Telekom Malaysia : Press Release on the Performance of the 2nd Quarter FY2025 Ended

About this update from Telekom Malaysia Bhd.

NEWS RELEASE For Immediate Release TM Q2 NET PROFIT RISES 1.7%, DECLARES 12.5 SEN INTERIM DIVIDEND KUALA LUMPUR, 29 August 2025 - Telekom Malaysia Berhad ("TM" or "The Group") today announced its financial results for the second quarter ended 30 June 2025 (2Q 2025), reflecting resilience in a competitive market and continued progress on its strategic priorities. During the quarter, Profit After Tax and Non-Controlling Interests (PATAMI) rose 1.7% compared to corresponding quarter last year to RM403.0 million, while Earnings before Interest and Tax (EBIT) grew 4.5% to RM640.0 million. For the first half of 2025 (1H 2025), revenue stood at RM5.62 billion versus RM5.74 billion a year earlier, as a result of intensely competitive market. Meanwhile, the Group registered EBIT of RM1.19 billion, down 5.8% compared to corresponding period last year, mainly due to forex losses. Adjusting for these, underlying EBIT recorded growth, underscoring TM's strong fundamentals, core operations and cost discipline in delivering profit despite revenue pressures. The Group continues to demonstrate its focus towards value creation and disciplined capital management, as reflected in the improvement of Return on Invested Capital (ROIC) to 12.81% from 12.34% a year ago. TM maintains a positive outlook for the year and is confident in meeting its 2025 guidance. The Board has declared an interim dividend of 12.5 sen per share, amounting to RM479.7 million for the financial year 2025, reaffirming its commitment to delivering sustainable returns to shareholders. 1H 2025 Segment Highlights Business to Consumer (B2C): Unifi registered steady revenue performance and an increase in fixed broadband subscribers driven by Unifi UniVerse convergence offerings, fuelled by content and mobile take up. Its diverse range of device bundles continued to attract strong demands from various segments . Meanwhile, as the preferred partner to more than 400,000 MSMEs nationwide, Unifi Business segment remained a key driver, with tailored digital solutions that promote digital inclusivity. Business to Business (B2B) : TM One revenue was softer as several major projects and sizeable deals are expected to be completed in the second half of the year. Nevertheless, beyond connectivity services such as cloud and ICT recorded steady growth. Carrier to Carrier (C2C) : TM Global remains well-positioned, with a strong pipeline of large-scale border-to-border bandwidth requirements expected to be delivered by year-end. On the domestic front, the segment is on track with its data centre expansions and the delivery of 5G mobile backhaul in support of the national 5G agenda. Investing for Future Growth TM continues to strengthen its long-term position through strategic investments in digital technologies, encompassing AI infrastructure and applications, data centres, edge facilities, expanded fibre coverage, 5G mobile backhaul and submarine cable systems. "Digital infrastructure and AI are no longer just a vision for TM. It's becoming a reality, from the establishment of data centres, sovereign cloud and GPU-as-a-Service to various enterprise applications that continuously help businesses to unlock digital capabilities and growth," said Amar Huzaimi Md Deris, Group Chief Executive Officer, TM. "Equally important is ensuring digital inclusivity for all communities and businesses, while nurturing the right talent to power Malaysia's digital future. Through our inaugural Jangkau Digital programme, we are reimagining Kampung Mukut in Pulau Tioman as the nation's first Smart Eco-Village. At the same time, the launch of Malaysia's first Faculty of Artificial Intelligence and Engineering at our education arm, Multimedia University, is a clear testament to this commitment. Together, these initiatives reflect TM's greater purpose of empowering lives and ensuring no one is left behind in the digital era." Outlook "While the market environment remains challenging, our results demonstrated resilience and ability to execute our strategic priorities. We are building positive momentum through stronger convergence growth, improved cost structures and disciplined capital management. With our investments in future-ready infrastructure, we are advancing towards our aspiration to become a Digital Powerhouse by 2030, while delivering sustainable value for our stakeholders," Amar concluded. END MEDIA REFERENCE FINANCIAL RESULTS Revenue : RM5,623.4 million for 1H 2025, down 2.1% from RM5,744.9 million in 1H 2024. For 2Q 2025, revenue declined 4.7% from 2Q 2024 to RM2,771.9 million. EBITDA: RM2,225.9 million for 1H 2025, down 4.9% year-on-year from RM2,340.4 million. For 2Q 2025, EBITDA stood at RM1,136.7 million, a decrease of 1.3% compared to the same quarter last year. EBIT : RM1,190.3 million for 1H 2025, a 5.8% decrease year-on-year. In 2Q 2025, EBIT grew 4.5% to RM640.0 million. PATAMI : RM804.2 million for 1H 2025, a 2.1% decline from 1H 2024. For 2Q 2025, PATAMI increased 1.7% from the same quarter last year to RM403.0 million. Fixed Broadband Subscribers : Expanded 1.4% in 1H 2025 year-on-year to 3.19 million. CAPEX : RM822 million in 1H 2025, equivalent to 14.6% of revenue compared to 8.0% in 1H 2024, prioritising fibre rollout, 5G mobile backhaul and data centre expansion. Dividend : Interim dividend of 12.5 sen per share, totaling RM479.7 million for the financial year 2025, consistent with the previous year. KEY INITIATIVES Business to Consumer (B2C) Relaunched Unifi Device Fiesta campaign, offering smart TVs from as low as RM1, paired with Unifi Home and Postpaid bundles. Introduced UNI5G Postpaid with Netflix, the first local postpaid mobile bundle with basic Netflix subscription and no contract. Launched the latest version of Unifi TV app and platform, offering a fully cloud-based, app-driven solution with live TV, video-on-demand, and streaming services across any device, anytime. Unifi Business launched Usahawan Digital TM , a RM10 million programme empowering 2,200 B40 entrepreneurs with digital tools, skills and community-based support under Sejahtera MADANI . Business to Business (B2B) Signed a five-year strategic collaboration with Agrobank to accelerate digital transformation for the agriculture sector and agro-based MSMEs. Showcased intelligent infrastructure including Cloud Alpha Edge and GPU-as-a-Service, as well as real-world AI solutions at ASEAN AI Summit 2025, powering sovereign AI, smart cities and the digital economy. Demonstrated mission-critical AI-powered solutions at LIMA 2025, including Vision AI, Tactical Comms Hub, Digital Remote Tower, Fiber Sensing and robotics, reinforcing TM's role in national defence and public safety. Launched Managed SASE (Secure Access Service Edge) and SSE (Security Service Edge), completing TM One's zero-trust cybersecurity portfolio. Carrier to Carrier (C2C) U Mobile appointed TM as its fibre backhaul partner under a RM2.4 billion, 10-year agreement to accelerate nationwide 5G rollout. Enhancing GPU capabilities at TM Iskandar Puteri DataCentre (IPDC), while IPDC's Block 2 is progressing on track. Growing HSBB footprint and nationwide fibre backbone to support the nation's digitalisation agenda. Expanding submarine cable systems and provisioning of 4G and 5G backhaul to strengthen Malaysia's digital backbone. Securing long-term international capacity to meet rising cross-border demand from hyperscalers. Nation Building Efforts and Initiatives Multimedia University (MMU), education arm of TM launched the Faculty of Artificial Intelligence and Engineering (FAIE), strengthening Malaysia's AI capabilities with applied skills for real-world solutions. Adopted 35 schools nationwide under the Sekolah Angkat Malaysia MADANI initiative to empower future talents and drive inclusive education through technology. Reimagined Kampung Mukut, Pulau Tioman as the first Smart Eco-Village under TM's inaugural Jangkau Digital programme, uplifting rural communities through connectivity, MSME empowerment, education and environmental stewardship. Announced as the Official Partner of the National Sepak Takraw Team in collaboration with Persatuan SepakTakraw Malaysia (PSM), reinforcing commitment to Malaysia's sports development. Yayasan TM awarded RM25 million in Future Leaders Scholarships 2025, enabling the next generation of leaders for Malaysia's digital future.

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