U Mobile's FY25 losses widen as 5G rollout drives higher costs

In FY25, U Mobile's headline net loss expanded by 124% to RM1.62 billion, reflecting higher network and device costs and a large acceleration of depreciation amounting to RM1.03 billion. Core net loss increased 163% to RM595 million, and after removing interest from shareholder advances and convertible preference shares, it stood at RM383 million versus RM19 million a year earlier. EBITDA declined 38% to RM773 million, pushing the margin down to 22.2%, while net interest costs rose modestly to RM432 million.

The company still saw mobile revenue rise 5%, raising its market share to 17.4%, aided by expansion in Sabah and Sarawak. Capital spending, excluding spectrum, jumped more than sixfold to RM1.23 billion, funded by higher term loans and vendor financing, leading net debt to climb 25% to RM3.38 billion and the net-debt-to-EBITDA ratio to 4.4 times. Mawar Setia Sdn Bhd became the largest shareholder with a 50.2% stake after acquiring shares from Singapore Technologies Telemedia.