TELEKOM Malaysia’s (TM) reported that profit after tax and minority interest (PATM) reached a record high with lumpy other income, one-offs, and a deferred tax adjustment in quarter three 2025 (3Q25).
“3Q25 headline PATMI of MYR686 mil was boosted by one-off items and higher other income (monetisation of unused copper),” said RHB.
After two quarters of decline, retail fibre revenue climbed 2.8% quarter-on-quarter (QoQ) from stronger sub-adds on converged bundles (40% penetration) and a 4% average revenue per user uplift with increased take-up of higher speed plans.
Meanwhile, backloaded connectivity deals and a pick-up in 5G backhaul revenue lifted wholesale revenue by a strong 24% QoQ in 3Q25 while TM One (business-to business (B2B)) sales notched incremental gains.
TM has affirmed its revenue guidance while eliminating its headline earnings before interest and tax guidance with higher voluntary separation scheme cost to be booked in 4Q25.
“We expect a stronger revenue seasonality in 4Q25 with backended/lumpy projects, stronger wholesale and B2B growth from the commissioning of the expanded data centre in Iskandar Puteri and additional project deliveries,” said RHB.
B2B and C2C revenues should scale higher into 2026 with the acceleration in U Mobile’s 5G network rollout, the commissioning of the expanded Klang Valley DC and off-take from a new sub-sea cable.
Management said the Nxera artificial intelligence (AI)-DC (64MW) has achieved a 15% progress rate with completion on track for mid-2026.
“We see scope for TM to dish out higher dividends due to its significantly under-levered balance sheet and manageable capex,” said RHB.
Key downside risks are competition, weaker-than-expected earnings and/or dividends, and adverse regulatory developments. —Nov 25, 2025
Main image: The Edge
