Telekom Malaysia Posts RM687m 1HFY26 Net Profit

KUALA LUMPUR, Aug 22 — Telekom Malaysia Bhd (TM) reported a net profit of RM687 million for the first half of FY2026, in line with Public Investment Bank (PIB) and consensus expectations at 41% of full-year forecasts.

The Group had earlier recorded a one-off write-down of RM127.3 million in 1QFY26 related to unutilised prepaid capacity of 5G multi-operator core network services. Management expects 5G costs to be more optimal going forward, having ceased access to DNB’s network in July and migrated to the second 5G network. PIB noted: “We expect higher profit in 2HFY26. TM’s medium to long-term outlook remains bright due to heightened demand for connectivity and AI.”

Telekom Malaysia

Revenue in 2QFY26 grew 6.8% YoY to RM2.96 billion, driven by all segments. Unifi rose 5.3% YoY to RM1.45 billion, adding 44,000 home subscribers and lifting ARPU by 4.8% to RM132. TM One revenue increased 3.3% YoY to RM693 million, supported by demand for Cloud and Cybersecurity, while TM Global surged 12% YoY to RM778 million on hyperscaler demand and backhaul expansion.

Net profit for 2QFY26 fell 9.3% YoY to RM365.5 million due to higher operating costs (+10.9% YoY), foreign exchange losses, manpower expenses from voluntary separation under its “Prihatin” programme, and FIFA World Cup 2026 broadcast rights.

TM remains on track to achieve low single-digit revenue growth, EBIT on par with 2025, and capex-to-revenue ratio of 18–20%. PIB reaffirmed TM as its top telco pick, citing strong demand for 5G fibre backhaul and data centre growth.

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