Telekom Malaysia : Press Release on the Performance of the 1st Quarter FY2026 Ended

Group declares quarterly dividend representing 78% payout ratio.

During the quarter, the Group recognised a one-off adjustment of RM127.3 million related to the write-down of unutilised prepaid capacity under the current 5G access agreement, following the announcement made in February.

Excluding this and other one-off items, the Group's underlying Profit After Tax and Non-Controlling Interests (PATAMI) grew 9.3% to RM436.3 million. On the back of this strong core performance, TM declared a dividend of 6.5 sen per share, representing 78% of reported PATAMI for the quarter.

• Operating Revenue: Increased 2.9% to RM2.93 billion, driven by growth across all major business segments.
• Underlying Earnings Before Interest and Tax (EBIT): Grew 6.3% to RM593.3 million, excluding one-off items. This reflects strong core operational performance and proactive move to unlock future efficiencies through a leaner cost structure.
• Underlying PATAMI: Increased 9.3% to RM436.3 million after adjusting for one-off items. This growth underscores the Group's core profitability and supports its enhanced dividend commitment to shareholders.
• Dividend: TM reaffirmed its commitment to its new dividend policy, and declared dividend of 6.5 sen per share, representing 78% of reported PATAMI for 1Q 2026. Growth Across Business Segments
• B2C (Unifi): Revenue rose 5.1% to RM1.46 billion, driven by stronger convergence adoption and higher device sales from bundled offerings.
• B2B (TM One and Credence): Revenue increased to RM671.5 million, driven by New Core portfolios expansion including cloud and ICT solutions.
• C2C (TM Global): Revenue grew 2.1% to RM776.6 million, supported by rising international hyperscalers' demand and domestic backhaul expansion.

As we celebrate our 80th anniversary, we remain committed to advancing our Digital Powerhouse aspirations - from connecting homes and MSMEs, to delivering critical digital solutions for enterprises, the Government and hyperscalers. As the nation's digital orchestrator, we continue accelerating Malaysia's digital transformation, strategically positioning it as the digital hub for the region," he added.

TM maintains a measured outlook amid prevailing uncertainties and remains focused on delivering its FY2026 guidance. Moving forward, TM will continue executing its strategic pillars with discipline to advance its growth, while ensuring Malaysia remains competitive in the global digital economy.

TM is Malaysia's Convergence Champion and a leading digital infrastructure provider, offering a comprehensive suite of digital and connectivity solutions. This includes converged offerings across home broadband, mobile, content and lifestyle solutions for consumers, as well as digital solutions for SME and MSME.

For enterprises and the Government, TM delivers next-generation connectivity and digital solutions, including SD-WAN, enterprise 5G, cloud, cybersecurity, smart services and AI solutions. To meet growing demand from domestic and international customers, TM continues to expand its submarine cable systems, mobile backhaul and data centre infrastructure, while advancing GPU-as-a-Service and wholesale connectivity offerings.

The Group remains focused on enhancing customer experience through continuous improvements in service quality and innovation, while driving greater operational efficiency and productivity. Guided by its sustainability philosophy of Prosperity, Planet and People, TM is committed to creating sustainable long-term value for communities, businesses and the nation, while advancing its Net Zero 2050 ambition. Together, these efforts underpin TM's aspiration to become a Digital Powerhouse by 2030, while positioning Malaysia as the digital hub for ASEAN.

For further information on TM, visit https://www.tm.com.my.