What is the story about?
What's Happening?
Telekom Malaysia Bhd (TM) has reported a 1.7% increase in net profit for the second quarter of 2025, reaching RM403 million. This growth is attributed to cost optimization efforts, including workforce reorganization and reduced operating expenses. Despite a 4.7% drop in revenue, TM's operating profit increased by 4.5% due to improved efficiencies. The company is expanding its digital infrastructure, including AI-ready data centers and 5G fiber backhaul, to support Malaysia's position as a regional digital hub. TM remains focused on meeting its 2025 targets despite challenges such as broadband competition and foreign exchange losses.
Why It's Important?
TM's profit increase highlights the effectiveness of cost optimization strategies in maintaining financial stability amid challenging market conditions. The company's investment in digital infrastructure and AI technologies positions it as a key player in Malaysia's digital transformation. As TM expands its capabilities, it may influence regional competition and collaboration in the telecommunications sector. The focus on AI and digital inclusivity aligns with global trends towards smarter and more connected networks.
What's Next?
TM is expected to continue its expansion of digital infrastructure, with new data centers set to be completed by early 4Q 2025. The company's focus on AI and digital services may drive further growth and innovation, potentially impacting regional and global telecommunications markets. TM's commitment to digital inclusivity and future-ready infrastructure could lead to new partnerships and business opportunities.
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