Telekom Malaysia Bhd to bolster 5G network with fibre connectivity, expects stronger revenue in 2H25

Telekom Malaysia Bhd (TM) is expected to see stronger revenue in 2H25 due to capacity upgrades on subsea cables and fibre connectivity for U Mobile's 5G network. TM's core profit of RM847mil in 1H25 came in within expectations, with revenue falling 2.1% to RM5.62bil and normalised earnings before interest, tax, depreciation, and amortisation declining 3.1% to RM2.27bil. Analysts expect TM to remain on track with its FY25 guidance, driven by steady subscriber growth, stronger business-to-business project execution, and rising carrier-to-carrier demand.

Telekom Malaysia Bhd (TM) is poised to experience stronger revenue in the second half of 2025 (2H25), according to analysts, driven by capacity upgrades on subsea cables and fibre connectivity for U Mobile's 5G network. The company's core profit for the first half of 2025 (1H25) came in at RM847mil, within expectations, despite a 2.1% decline in revenue to RM5.62bil and a 3.1% decrease in normalised earnings before interest, tax, depreciation, and amortisation (EBITDA) to RM2.27bil [2].

Analysts anticipate that TM will remain on track with its FY25 guidance, supported by steady subscriber growth, stronger business-to-business (B2B) project execution, and rising carrier-to-carrier (C2C) demand. The company has been investing in infrastructure to bolster its digital offerings and support long-term growth. For instance, TM is deploying fibre connectivity for U Mobile's 5G network, with revenue contributions expected to commence by the end of this year [2].

Additionally, capacity upgrades on several existing subsea cables are slated for completion in the third and fourth quarters of 2025, allowing TM to capture revenue from international bandwidth deals. These upgrades are expected to lead to increased infrastructure-driven earnings from 2H25 onwards [2].

The company's data centre initiatives also remain a key enabler for its C2C segment. The twin-core data centres – Klang Valley Data Centre and Iskandar Puteri Data Centre projects – are filling healthily, with an additional capacity of 20MW set to come on stream by the fourth quarter of 2025 (4Q25) [2].

TM's 64MW (Phase 1) data centre with Singtel is expected to be commissioned by the third quarter of 2026 (3Q26), following the healthy pre-sold capacities achieved in Singtel's upcoming Tuas data centre in Singapore and a joint-venture data centre in Thailand commissioned in the second quarter of 2025 (2Q25) [2].

Analysts expect TM to continue its momentum in 2H25, with stronger deliveries of government projects for TM One. This, coupled with cost optimisation efforts, is expected to drive core profit growth in 2Q25, supported by ongoing subscriber growth and rising C2C demand [2].

References:
[1] https://www.thestar.com.my/business/business-news/2025/09/01/tm-quarterly-net-profit-increases-to-rm403mil
[2] https://www.thestar.com.my/business/business-news/2025/09/03/network-infrastructure-work-to-bolster-tm
[3] https://www.webpronews.com/microsoft-unveils-surface-laptop-5g-intel-power-5g-ai-for-business-users/