KUALA LUMPUR: Telekom Malaysia Bhd’s (TM) core net profit for the second quarter of 2025 (2Q25) is expected to grow by four to nine per cent, even as revenue may fall by up to four per cent, CIMB Securities said.
The research house attributed the earnings growth to effective cost management, lower net interest expenses, and a normalisation of effective tax rates — factors that could offset softer revenue.
“This may see first-half 2025 (1H25) core net profit ease by four to six per cent to around 48–49 per cent of our full-year estimate,” CIMB said in a note. “We consider this broadly in line with expectations, as we anticipate a stronger second half, driven by seasonally higher revenue from TM Global and TM One.”
Despite the potential drop in core net profit, CIMB expects TM to maintain its 1H25 dividend per share at 12.5 sen.
The brokerage sees the modest revenue decline as stemming from ongoing intense competition in the fibre broadband segment and continued weakness in TM One’s performance.
“Fibre broadband competition remains fierce, with rebates and promotions showing no signs of abating. We expect Unifi subscriber growth to remain modest quarter-on-quarter, while average revenue per user could fall a further one to three per cent as TM matches aggressive competitor offers,” it said.
Excluding voluntary separation scheme charges in 2Q24, CIMB estimates TM’s total operating costs to drop by one to five per cent year-on-year in 2Q25. Lower Unifi subscriber acquisition costs, reduced staff expenses from a leaner workforce, and lower other operating expenses are expected to outweigh higher 5G access costs.
TM will announce its 2Q25 results on Aug 29.
