KUALA LUMPUR: Telekom Malaysia Bhd’s (TM) core net profit for the second quarter of 2025 (2Q25) is expected to grow between four and nine per cent, despite a possible revenue decline of up to four per cent, CIMB Securities said.
The research house attributed the earnings growth to cost control measures, savings on net interest expenses and a normalisation of effective tax rates, which would offset softer revenue.
“This could result in first-half 2025 (1H25) core net profit easing four to six per cent to about 48–49 per cent of our full-year forecast,” it said in a note.
“We deem this largely in line with expectations, as we project the second half to be sequentially stronger, in line with seasonally higher revenue from TM Global and TM One.
“Despite potentially lower core net profit, we believe TM would sustain a 1H25 dividend per share at 12.5 sen,” it added.
CIMB Securities expects the modest revenue drop to be driven by persistent stiff competition in the fibre broadband market and prolonged weakness in TM One’s performance.
“From our market observations, fibre broadband competition has stayed intense, with no let-up in rebates and promotions.
“We expect Unifi subscribers to continue growing only mildly quarter-on-quarter, while average revenue per user could decline a further one to three per cent as TM matches competitors’ aggressive offers,” it said.
Excluding voluntary separation scheme charges in 2Q24, CIMB estimates TM’s total operating costs to fall one to five per cent year-on-year in 2Q25.
It said lower Unifi subscriber acquisition costs, reduced staff expenses from a smaller headcount and lower other operating expenses should more than offset higher 5G access costs.
TM is scheduled to release its 2Q25 results on Aug 29.
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