U Mobile sees FY25 losses widen as 5G costs bite, gains ground in services
KUALA LUMPUR: U Mobile, Malaysia's second 5G network provider, saw its core net loss widen in financial year 2025, as higher network costs and accelerated depreciation linked to its broadband rollout weighed on earnings.
Malaysia's second 5G network provider, U Mobile, reported a widening core net loss for the financial year 2025 due to rising network costs and accelerated depreciation linked to its broadband rollout. The company's headline net loss increased by 124 percent year-on-year to RM1.62 billion, partly due to accelerated depreciation of RM1.03 billion, up from RM489 million in FY24.
U Mobile's core net loss widened 163 percent YoY to RM595 million, excluding interest costs from shareholders' advances and redeemable convertible preference shares. Its earnings before interest, tax, depreciation, and amortisation fell 38 percent YoY to RM773 million, with a margin that fell 15.2 percentage points to 22.2 percent.
Normalised depreciation and amortisation decreased 10 percent YoY to RM935 million, reflecting a lower fixed-asset base due to cumulative accelerated depreciation in FY2024 and FY2025. Despite the cost increases, U Mobile gained ground in mobile services, with mobile service revenue growing five percent YoY, outperforming CelcomDigi Bhd's one percent decline and Maxis Bhd's flat growth.
U Mobile's mobile revenue market share increased 0.8 percentage point to 17.4 percent, continuing its gradual rise from 2.1 percent in FY12. The company's expansion in Sabah and Sarawak, along with device-bundled postpaid and 5G broadband plans, contributed to the stronger topline. U Mobile's capital expenditure surged more than sixfold to RM1.23 billion, funded by higher term loans, vendor financing, and short-term trade credits.
As a result, U Mobile's net debt increased 25 percent YoY to RM3.38 billion, doubling the net debt-to-Ebitda ratio to 4.4 times. Free cash flow to equity turned negative at RM251 million due to heightened cash-flow capital expenditure and net repayment of vendor financing. During the year, Mawar Setia Sdn Bhd became U Mobile's largest shareholder with a 50.2 percent stake, up from Singapore Technologies Telemedia's 20.7 percent.
Written by urgent.news from New Straits Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
