KUALA LUMPUR (Nov 24): Telekom Malaysia Bhd (KL:TM) delivered a sharp 47.6% rise in net profit for its third quarter ended Sept 30, 2025 (3QFY2025), underpinned by resilient core operations, fair value gains from its investment in a technology fund and a significant reduction in tax charges.

For 3QFY2025, net profit climbed to RM686.27 million from RM465.04 million a year earlier, while revenue edged up 2.6% to RM2.99 billion compared with RM2.92 billion previously.

Operating profit before finance cost rose 39% to RM760.4 million from RM547.1 million, supported by RM257.8 million in other operating income and gains. In its bourse filing, TM noted that the increase was cushioned by income from network modernisation initiatives, which allowed the monetisation of unused copper cables, alongside higher gains from the group’s investment in a technology fund.

Tax and zakat expenses declined substantially to RM32.7 million from RM204 million a year ago. No dividend was declared for the quarter under review.

For the nine months ended Sept 30, TM’s net profit rose 15.9% to RM1.49 billion, although revenue dipped marginally by 0.5% to RM8.62 billion from RM8.66 billion a year ago.

Group chief executive officer Amar Huzaimi Md Deris said the stronger results underscore TM’s transformation momentum and its focus on new growth areas.

“The improved performance reflects our consistent execution discipline and commitment to value creation. We are solidifying our core business, scaling sovereign data centre and cloud infrastructure, and embedding AI across operations to drive long-term competitive advantage,” he noted.

Amar added that TM’s priority in the final quarter is to sustain profitability while investing strategically in future-ready infrastructure to catalyse Malaysia’s digital economy. This, he said, aligns with the group’s aspiration to become a “Digital Powerhouse by 2030” and position Malaysia as Asean’s digital hub.

TM also said its capital expenditure stood at 14.9% of revenue, in line with full-year guidance. The group noted that its data centre expansion in the Klang Valley and Iskandar Puteri, Johor has entered operational phase, adding 20MW of capacity and reinforcing Malaysia’s appeal to hyperscalers and cloud providers.

It also highlighted that improved asset utilisation lifted its return on invested capital to a record 13.5%, marking the highest level to date.

By segments, TM said Unifi continued to grow steadily, with fixed broadband subscribers rising 1.3% year-on-year (y-o-y) to 3.21 million, supported by convergence offerings under the UniVerse ecosystem, the launch of the new Unifi TV 2.0 experience, and stronger adoption among micro, small and medium enterprises.

TM One, the group’s enterprise arm, recorded stable revenue quarter on quarter, driven by demand for cloud and ICT solutions from government and corporate clients. Notable initiatives included collaborations with NCT Group to develop smart industrial parks, the AI-powered “Pahang Destina” tourism portal, and a five-year managed private cloud contract with one of Malaysia’s largest private hospital groups.

Meanwhile, TM Global, the carrier-to-carrier segment, delivered double-digit quarter-on-quarter growth and sustained y-o-y momentum, fuelled by demand for cross-border connectivity and advanced data services.

The division is scaling its regional presence through significant data centre expansion and strategic investments in submarine cable infrastructure. It recently completed Malaysia’s first open international cable landing station in Morib, Selangor and strengthened regional connectivity via the CANDLE Submarine Cable System, linking Asean to Japan.

Shares in TM closed five sen lower at RM7.25 on Monday, valuing the group at RM27.82 billion. Year to date, the stock has gained 9%.