28 May 2025
TM Delivers Steady Performance in Q1 2025, Positions for Long-term Growth
Q1 2025 Key Highlights (vs Q1 2024)
- Operating Revenue increased by 0.5% YoY to RM2.85 billion
- EBIT and PATAMI stood at RM550.3 million and RM401.2 million, respectively
- Fixed Broadband Subscribers increased by 1.6%
- CAPEX at RM280.0 million, representing 9.8% of revenue
KUALA LUMPUR, 28 May 2025 – Telekom Malaysia Berhad (“TM” or “the Group”) today announced its financial results for the first quarter ended 31 March 2025 (Q1 2025), reflecting positive topline growth amidst an evolving and dynamic market landscape.
The Group’s operating revenue increased by 0.5% year-on-year (YoY) to RM2.85 billion, primarily driven by higher revenue from data, other telecommunication services and education segment. Earnings Before Interest and Tax (EBIT) stood at RM550.3 million due to the shift in recognition of 5G access costs, higher device costs in line with stronger device revenue and unfavourable foreign exchange movements. Consequently, Profit After Tax and Non-Controlling Interests (PATAMI) came in at RM401.2 million, a 5.6% decline YoY, partially mitigated by lower net finance costs.
Capital expenditure (CAPEX) for the quarter was RM280.0 million, accounting for 9.8% of revenue, on track to meet the 2025 guidance range. The majority of it focused on expanding digital infrastructure such as existing data centres, domestic fibre network and submarine cable systems, which are crucial for a thriving and vibrant digital ecosystem.
Amar Huzaimi Md Deris, TM Group Chief Executive Officer said, “TM’s performance in Q1 2025 reflects our disciplined execution of our strategic priorities aimed at long-term value creation amidst dynamic market landscape. Nevertheless, our fundamentals remain strong, marked by steady performance, continued operational efficiency, and a growing customer base.”
“During the quarter, we sustained fixed broadband subscribers' growth and continued to delight our customers through attractive Unifi UniVerse bundled device offerings, delivering seamless home internet, mobile and lifestyle solutions. This further reinforced our position as Malaysia’s Convergence Champion with the only quad-play services. We also observed positive traction on our national cloud solutions that enable digital transformation across enterprise and public sectors, alongside significant data demand from hyperscalers. In addition, our recent strategic collaboration with U Mobile to provide high-capacity 5G fibre backhaul is a testament of TM’s strength and ability to deliver at scale, speed and quality.”
“We remain focused on strengthening our core to better position ourselves in capitalising emerging opportunities such as data centres, GPU-as-a-Service, cloud and smart services. These efforts are underpinned by our nation-building commitments especially in talent development, community initiatives, and digital empowerment, driving digital inclusivity and ensuring no one is left behind. By aligning business growth with meaningful impact, we demonstrate that commercial success and achieving a higher purpose can go hand in hand, bringing us closer to our aspiration of becoming a Digital Powerhouse by 2030 and position Malaysia as the digital hub of ASEAN,” Amar concluded.
TM maintains a confident outlook driven by disciplined execution, strategic investment, and a forward-looking approach to value creation.
Lines of Businesses (LOBs) Performance
B2C Strengthens Position as the Market Leader in Converged Services
TM’s B2C segment, anchored by Unifi, recorded a revenue of RM1.39 billion in Q1 2025 YoY. It also reinforced its leadership in convergence offerings with a 1.6% year-on-year increase in fixed broadband subscribers, reaching 3.185 million contributed by traction from TM’s Unifi UniVerse convergence offerings, which bundle home internet, mobile, content, and lifestyle services to meet the demand of today’s digital customers. At the same time, Unifi Business continued to empower over 400,000 MSMEs nationwide with digital solutions tailored to their needs.
The Group’s convergence model is designed not only to enhance customer retention, but also to create sustained revenue opportunities across multiple service lines. Investments in AI-driven service operations, predictive maintenance, and digital self-service channels further support this model, enabling TM to manage cost-to-serve while strengthening customer lifetime value. For more information, visit https://unifi.com.my/all-in-one, https://unifi.com.my/tv/ and https://biz.unifi.com.my/
B2B Drives Digital Transformation for Enterprises and Government
TM’s B2B segment, anchored by TM One, recorded a revenue of RM668.7 million in Q1 2025. It achieved positive growth in Beyond Connectivity, driven by stronger performance in customer projects, outsourcing business, and ICT services including cloud and cybersecurity.
The segment continued to enhance its digital solution offerings, including smart services, cybersecurity, and AI-powered solutions. As the national cloud provider, it is driving digital transformation through secure, sovereign and scalable cloud infrastructure. At the same time, the launch of sector-specific events called "TM One NEXT Series" showcasing and discussing the latest technology solutions for various industries underscored TM’s commitment to driving innovation and accelerating digital adoption across key verticals. It also supported digital inclusivity efforts by powering the Sentuhan Digital Madani Kiosks with 5G Fixed Wireless Access, reinforcing its role as a trusted digital enabler.
C2C Strengthens Malaysia’s Position as a Digital Hub for the Region
TM’s C2C segment, anchored by TM Global delivered a positive performance in Q1 2025 with revenue reaching RM760.9 million, a 2.4% YoY increase, primarily driven by higher revenue from international data and growing demand for data centre services. Domestically, TM Global continued the rollout of mobile backhaul to support 5G and increased wholesale broadband access to strengthen last-mile delivery, ensuring reliable, high-speed connectivity across the country. It also recently partnered with U Mobile to provide high-capacity fibre backhaul, the essential backbone of a resilient and high-performance 5G ecosystem.
Internationally, the segment secured substantial long-term capacity requirements from global carriers, strengthened data centre co-location services, and expanded interconnection with international customers. It also progressed the data centre upgrades and submarine capacity investments. The introduction of sovereign GPU-as-a-Service (GPUaaS) also marked a key milestone in supporting Malaysia’s AI ecosystem, reinforcing the nation’s position as a strategic digital hub for the region.
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Credence, TM’s new cloud and digital services company, to empower enterprises’ digital capabilities – from infrastructure to insights
Powered by TM as a corporate start-up, Credence will bring new expertise and agility to grow TM’s digital services to support customers’ requirements and capture new opportunities. Kuala Lumpur, 6 July 2022 – Telekom Malaysia Berhad (TM) today launched Credence, a new cloud and digital services company focused on expanding the capabilities of enterprises and the public sector in their digital transformation journey. “With enterprises re-evaluating their capabilities and offerings to respond to today’s increasingly digital demands, TM is poised to become an astute digital solutions provider in addition to its established connectivity leadership position. “TM will empower organisations in the private and public sector to transform with greater efficiency and flexibility while offering a superior return on investment. We recognise that now is an opportune time to leverage on our strengths, address market needs and launch a dedicated company – Credence – that is focused on technology and digital innovation,” said Imri Mokhtar, TM’s Group Chief Executive Officer. “TM will offer a differentiated advantage in how we bring end-to-end digital solutions and services to customers through Credence. Leveraging both local and international technologies as well as expertise, Credence will provide greater and faster time-to-value by understanding local customer requirements and challenges. “In the long run, through our foray into the digital services market, we aim to improve TM’s growth trajectory and unlock significant value for both our customers and stakeholders,” Imri explained. Credence is led by Krish Datta, an experienced technology leader who joined TM in late 2021 to shape its new digital services arm. Leveraging TM’s established resources, infrastructure, and its strong links to enterprises and the public sector, Credence is well-positioned to accelerate Malaysia’s digital transformation journey. “We offer organisations the ability to embark on their digital journey with better predictability, lesser concern and disruption while choosing the best tech solutions that suit their needs and priorities, enabling them to focus on their core business,” said Krish. He explained that Credence will provide capabilities from tech infrastructure to business insights, cloud advisory, IT landscape migration, SaaS, managed services as well as analytics and insights. “Credence aims to deliver outstanding experience for our customers. We are the only company that is able to offer our customers the full end-to-end solutions from infrastructure to insights (I2I). Our approach is to meet customers where they are, discover what their mission-critical goals are, and work with them according to their needs and priorities. “We are also platform and technology-agnostic – putting us in a better position to offer solutions with a stronger customer bias vis-a-vis a vendor bias,” explained Krish. As part of the launch, Credence announced key partnerships with VMware, AWS and Huawei, which enables them to offer a broad range of options to enterprises, customised to their individual growth needs. “We are pleased to announce that Credence is working with VMware to deliver their first sovereign cloud service in Malaysia, keeping in mind the data sovereignty of customers in Malaysia,” said Krish. “Malaysia’s digital-first approach is enabling massive transformation and opportunity for businesses in the country. VMware is working with Credence to help enterprises in regulated industries, and companies in the e-commerce and energy sectors to meet their unique cloud and data sovereignty requirements within Malaysian borders,” said Ajay Turki, Director Cloud Sales, Southeast Asia & Korea, VMware. “We are also enhancing the offerings of TM’s Cloud Alpha Edge to include services, SaaS solutions as well as data insights to be the leading Government cloud service provider,” added Krish. “At its core, however, digital transformation is less about technology and more about people, and the success of organisations depends on developing, cultivating and nurturing the next generation of technologically-skilled professionals. Through Credence, we aim to address the current digital and tech skills gap – making strategic hires from the tech sector as well as transferring similar skillsets from TM to spearhead this new digital start-up. “In this way, we hope to nurture a pipeline of next-generation tech and digital talents, and equip Malaysians for a digital future by upskilling them with digital capabilities, and providing them access to the right data and tools. This will not only benefit organisations but our collective progress as a nation, solidifying our Digital Malaysia aspirations,” concluded Imri.
TM SUPPORTS GOVERNMENT’s DECISION FOR TWO-PHASED IMPLEMENTATION OF 5G
TM supports the Government’s decision to implement 5G over two phases, as announced by Communications and Digital Minister YB Fahmi Fadzil on 3 May 2023. TM will work closely with the Government and the industry to ensure the success of both Phase 1 (80% service coverage by DNB) and Phase 2 (shift to two networks) for Malaysia’s 5G implementation. TM looks forward to continue playing an active role in the 5G implementation, leveraging its nationwide fibre infrastructure, extensive digital platforms (data centres, edge nodes) and rollout experience. TM shall continue to deliver converged connectivity and solutions across fibre and 5G to its home, SME, enterprise and Government customers through Unifi and TM One. TM is committed to serve as the nation’s trusted partner to grow Malaysia’s overall connectivity and digital ecosystem, including 5G. It is committed to shaping a Digital Malaysia through technology that empowers communities, businesses and Government.
TM collaborates with Malaysia telecommunications tower providers for access to tower sites facilities
The strategic collaboration affirms TM’s commitment and readiness to drive Malaysia’s Digital Economy aspirations as the national digital infrastructure accelerator Telekom Malaysia Berhad (TM) marked another milestone as the national connectivity and digital infrastructure provider when its wholesale domestic and international business arm, TM WHOLESALE, entered into a collaboration with nine (9) tower providers (TowerCos), enabling access to tower sites facilities. The nine (9) TowerCos are the members of Persatuan Penyedia Infrastruktur Telekomunikasi (PPIT), namely D'Harmoni Telco Infra Sdn Bhd, Melaka ICT Holdings Sdn Bhd, Perlis Comm Sdn Bhd, Infra Quest Sdn Bhd, Perak Integrated Network Services Sdn Bhd, EdgePoint Towers Sdn Bhd, PDC Telecommunication Services Sdn Bhd, Desabina Industries Sdn Bhd and Yiked Bina Sdn Bhd. The ceremony was held recently in Johor Bahru attended by TM and nine (9) other TowerCos. TM was represented by Amar Huzaimi Md Deris, Executive Vice President, TM WHOLESALE, while the TowerCos were represented by: Dato' Haji Mohd Rehat Ahmad, Chief Operating Officer, D'Harmoni Telco Infra Sdn Bhd, who is also the President of PPIT Dato' Mohd Fauzi Yaakub, Deputy Chairman, Melaka ICT Holdings Sdn Bhd Dato' Ramli Abd Rahman, Managing Director, Perlis Comm Sdn Bhd Ab Aziz Yunus, Executive Chairman, Infra Quest Sdn Bhd Iwan Che Wan Che Ismail, Chief Executive Officer / Managing Director, Perak Integrated Network Services Sdn Bhd Muniff Kamaruddin, Chief Executive Officer, EdgePoint Towers Sdn Bhd Hasmunir Hamid, Acting Chief Executive Officer, PDC Telecommunication Services Sdn Bhd Shikh Badrudden Shikh Ismail, General Manager, Desabina Industries Sdn Bhd Azhan Abdul Hamid, General Manager, Yiked Bina Sdn Bhd Under the collaboration, the nine (9) TowerCos will provide TM with access to their tower sites, including land and rooftop facilities. This will enable TM to connect the towers with its high-speed fibre optic network to support high quality network performance and capability. Commenting on the collaboration, Amar Huzaimi said, "TM through TM WHOLESALE, is committed to ensuring our national telecommunication industry is provided with cutting edge connectivity and extensive fibre infrastructure solutions as a catalyst to accelerate the delivery of a high quality digital experience to all Malaysians, true to our role as national digital infrastructure accelerator. This will allow service providers to serve their customers with faster connectivity speed and greater bandwidth capacity for the current 4G and future 5G services nationwide. This partnership further demonstrates our commitment as the enabler of Digital Malaysia in supporting the country's digital aspirations, which include the Jalinan Digital Negara (JENDELA) and the Malaysia Digital Economy Blueprint (MyDIGITAL)." Meanwhile, Dato' Hj Mohd Rehat said, "TM has been a long-standing partner of PPIT for over a decade, and together, we have developed a high level of trust among each other. After a few series of fruitful discussions, PPIT and TM have once again agreed to ink a new collaboration to continue to work hand-in-hand in respect of the access to tower sites facilities."
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