Telecom Industry ARPU Declines 0.8% in Q2 2025, Expected to Decline Further in H2

Telecom industry ARPU declined 0.8% QoQ in 2Q 2025 due to bundled discounts and promotional rebates, according to CIMB Securities. The decline may continue in 2H 2025, but ARPU is expected to stabilize thereafter. Maxis reported a 7% QoQ rise in core EPS, while CelcomDigi's core EPS slipped 2% QoQ. Telekom Malaysia's core EPS fell 4.5% QoQ due to lower one-off income and higher depreciation. CIMB Securities maintained its "Overweight" rating on the telecom sector.

The telecom industry experienced a significant decline in Average Revenue Per User (ARPU) in the second quarter of 2025, according to CIMB Securities. The ARPU declined by 0.8% quarter-over-quarter (QoQ) due to bundled discounts and promotional rebates. While the decline is expected to continue in the second half of 2025, CIMB Securities anticipates that ARPU will stabilize thereafter.

Maxis reported a 7% QoQ rise in core earnings per share (EPS), while CelcomDigi's core EPS slipped 2% QoQ. Telekom Malaysia's core EPS fell 4.5% QoQ, attributed to lower one-off income and higher depreciation. Despite these fluctuations, CIMB Securities maintained its "Overweight" rating on the telecom sector, indicating a positive outlook.

Analysts at Barclays have also shown optimism towards the telecom sector, maintaining an Overweight rating for Credo Technology (CRDO) and raising its price target to $165 from $85, citing strong Q1 financial results and robust growth prospects [1]. This positive sentiment underscores the sector's resilience and potential for future growth.

References:
[1] https://www.ainvest.com/news/barclays-maintains-overweight-rating-credo-technology-raises-pt-165-85-2509/