KUALA LUMPUR: Telekom Malaysia Bhd’s (TM) net profit fell 9.3% to RM365.48 million for the second quarter ended June 30, 2026 (Q2’26), from RM402.97 million a year earlier, despite revenue rising 6.8% to RM2.96 billion.
The telecommunications group said the lower reported profit was after accounting for costs related to Prihatin and foreign exchange movements. Underlying profit after tax and non-controlling interests, however, increased 4.6% to RM406.3 million, supported by resilient core operations and lower net financing costs.
For the six months ended June 30, 2026 (H1’26), net profit declined 14.6% to RM687 million from RM804.22 million previously, while revenue grew 4.8% to RM5.9 billion from RM5.62 billion.
TM said the H1’26 performance remained encouraging despite year-on-year adjustments, including the previously announced 5G capacity write-down and other one-off costs, which were specific to the period and non-recurring.
The group declared a second interim dividend of seven sen per share, bringing total dividends for H1’26 to 13.5 sen per share. Revenue growth in H1’26 was driven across all customer segments.
Its business-to-consumer (B2C) segment, Unifi, recorded a 5.2% increase in revenue to RM2.91 billion, supported by stronger adoption of device-bundled and converged offerings across broadband, mobile, content and smart home solutions.
Business-to-business (B2B) revenue rose 1.9% to RM1.36 billion, supported by continued demand for connectivity and advanced digital solutions from enterprises and the government.
Meanwhile, carrier-to-carrier (C2C) revenue grew 6.8% to RM1.55 billion, supported by sustained momentum in data centre, international data and 5G backhaul services.
TM Group CEO Datuk Amar Huzaimi Md Deris said the group’s performance demonstrated tangible progress under its PWR 2030 strategy.
“For consumers, we are strengthening Unifi’s convergence proposition by delivering greater value across broadband, mobile and smart home AI solutions, while making premium content more accessible through Unifi TV, such as the FIFA World Cup 2026,” he said in a statement.
He said TM was also progressing higher-value, nationally hosted digital solutions for enterprises and the government, including cloud, cybersecurity, smart services and AI platforms.
“At the same time, we continue to strengthen our regional connectivity and data centre infrastructure to capture growing demand from hyperscalers and AI-driven workloads,” Amar Huzaimi said.
He added that AI and sustainability remained integral to TM’s transformation, with the group focused on strengthening business resilience, environmental stewardship and inclusive digital progress.
“We have taken bold but necessary strategic actions in the first half to strengthen TM’s efficiency, competitiveness and profitability in the long run,” he said.
Amar Huzaimi said TM remained on track to deliver its FY26 guidance and value-creation commitments, supported by its focus on growing higher-value recurring revenue across all customer segments.
Capital expenditure stood at RM555.7 million in H1’26, equivalent to 9.4% of revenue, with investments focused on data centres, cloud, GPU-as-a-Service and access to 5G.
TM said capital expenditure is expected to catch up in the second half of the year as it accelerates planned investments in line with its full-year guidance.
