Latest news with #CelcomDigiBhd
The Star
31-05-2025
- Business
- The Star
CelcomDigi answers call for growth
DESPITE reporting encouraging results for the first quarter ended March 31, 2025 (1Q25), CelcomDigi Bhd isn't resting on its laurels. It's keeping its plate full as it continues to build on the mega merger two and half years ago. The latest figures show its net profit and revenue inching up 2% and 1.2% year-on-year (y-o-y) to RM383.8mil and RM3.21bil, respectively. Chief executive Datuk Idham Nawawi acknowledges that the group's performance has been uplifting, although more work lies ahead.
New Straits Times
23-05-2025
- Business
- New Straits Times
CelcomDigi core earnings set to accelerate, driven by integration gains
KUALA LUMPUR: CelcomDigi Bhd's core earnings growth is expected to accelerate to 11 per cent and 25 per cent in financial year 2026 (FY26) and FY27, from four per cent in FY25. RHB Investment Bank Bhd (RHB Research) said this is driven by the tapering off of integration-related costs, the realisation of stronger synergies and improving commercial execution. The firm also noted that CelcomDigi has reaffirmed its steady-state pre-tax savings target of RM700 million to RM800 million post-FY27. For FY26, CelcomDigi expects low-single digit growth in service revenue, low-to-mid single digit earnings before interest and taxes (EBIT) growth and capital expenditure-to-sales of 14-16 per cent. "We see integration cost tailing off in FY25 with the network integration coming to a close," the firm said in a research note. "With the improvement in commercial execution and greater extraction of merger synergies, we see core earnings growing at a compound annual growth rate (CAGR) of 18 per cent for FY25-27," it added. According to RHB Research, CelcomDigi has completed about 80 per cent of its network integration as at end of first quarter of 2025 from 75 per cent in the fourth quarter of 2024. "We see some challenges in integrating the remaining 20 per cent of the sites due to extended discussions with Digital Nasional Bhd and site owners with some slippage in integration timeline to the second half (Q1) of 2025," it added. The firm said the company has booked RM300 million in integration cost since the merger started, out of the RM527 million in total integration cost including capital expenditure (capex). Meanwhile, integration cost in Q1 totaled RM63 million, of which RM41 million is operating expenditure (opex)-related and the remainder on capex (RM22 million). The firm noted that the Q1 capex of RM148 million was low, representing just 5.0 per cent of revenue, but expected to increase over the next few quarters – in line with the IT platform upgrades. RHB Research kept its 'Buy' call on CelcomDigi with a target price of RM4.40 a share.
The Sun
22-05-2025
- Business
- The Sun
CelcomDigi posts resilient Q1 results, declares 3.7 sen interim dividend
PETALING JAYA: CelcomDigi Bhd delivered resilient results for the first quarter of financial year 2025 (Q1'25) with growth in revenue and profit after tax (PAT) while its core business stabilised. This achievement, CelcomDigi said in a statement today, sets the company in the right direction for sustained profitable growth as the nation's largest mobile network operator. Total revenue grew 1.2% year-on-year (y-o-y) to RM3.209 billion, while earnings before interest and tax (Ebit) registered growth of 21.3% y-o-y to RM696 million, and PAT improved 4.6% y-o-y to RM388 million as a result of prudent cost management in trimming operational expenditure and lower depreciation and amortisation. Adjusted for non-recurring items (severance packages in Q1'24 and rights-of-use impairments in Q4'24), Ebit would have been RM758 million, while PAT was at RM434 million. The company declared a first interim dividend of 3.7 sen per share, in line with its sustainable dividend commitment to shareholders. Integration and transformation initiatives progressed as planned across network, IT and retail, with intensified efforts in driving customer and operational excellence across the organisation. CelcomDigi's network integration and modernisation reached about 80% completion as of end-March 2025, with six states completed. The company continued to ramp up IT consolidation activities, with 28 out of over 50 systems integrated to date, with a target of achieving approximately 75% of systems integrated by year end. This will enable seamless, personalised digital experiences at scale for its customers, and will strengthen the company's customer positioning. CelcomDigi's retail transformation continued to advance, with over 50 new digital-concept stores launched to date, resulting in higher sales productivity and enhanced customer engagements. CelcomDigi is now embarking on the next phase of transforming more than 300 exclusive partner stores. Upon completion, the company will form one of Malaysia's largest branded retail chains of digital products distribution, well-positioned to support Malaysians' evolving digital lifestyles. As a flow-through of cost efficiencies from these integration initiatives, the company remains on track to deliver steady-state annualised cost savings of around RM700 million to RM800 million post-2027. CEO Datuk Idham Nawawi said, 'We are pleased to report an encouraging start to 2025, with our first quarter performance delivering growth in revenue, Ebit, and PAT. This reflects the continued strength of our core business and disciplined execution of our strategic priorities. 'We are progressing well in creating pathways for sustained profitable growth through four strategic focus areas – solidifying market leadership, enhancing customer experience, driving operational excellence, and investing for the future. Our prioritisation on customer and operational excellence continues to underpin our performance, supported by ongoing investments in enhancing our network infrastructure, technology platform capabilities, and talent bench strength, alongside disciplined cost management. 'With these efforts, we are well-positioned to deliver long-term value to our customers and stakeholders, and to compete effectively in a dynamic and competitive market.'
New Straits Times
22-05-2025
- Business
- New Straits Times
CelcomDigi's Q1 earnings up 1.9pct to RM383.78mil, offset by sharp rise in tax expenses
KUALA LUMPUR: CelcomDigi Bhd reported a marginal 1.9 per cent increase in net profit to RM383.78 million for the first quarter ended March 31, 2025 (1Q25), up from RM376.46 million in the same period last year. The modest growth was largely offset by a sharp rise in tax expenses, which diluted gains from operational income, the group said in a filing to Bursa Malaysia. Tax expenses rose to RM164.95 million, nearly triple the amount a year earlier due to a prior reversal in tax provision. CelcomDigi's revenue for the quarter increased to RM3.21 billion from RM3.17 billion previously. As a result, the group registered higher earnings per share of 3.27 sen against 3.21 sen in 1Q24. CelcomDigi said its service revenue stood at RM2.69 billion in 1Q25, down 1.2 per cent year-on-year (YoY). Postpaid revenue rose 3.2 per cent YoY to RM1.07 billion, driven by a 6.2 per cent increase in subscribers, higher uptake of convergence plans, more device contracts, and migration from prepaid to postpaid. Prepaid revenue came in at RM1.06 billion, with the subscriber base showing slight quarter-on-quarter (QoQ) growth as more users adopt mobile internet, pointing to a shift toward higher-value, data-focused customers. Home and fibre revenue rose 48.1 per cent to RM55 million, fueled by subscriber growth and strong demand for CelcomDigi One plans and fixed wireless access. CelcomDigi closed the quarter with additional 190,000 subscribers YoY, an increase of 0.93 per cent, bringing its total subscribers to 20.6 million. The company declared a first interim dividend of 3.7 sen per share, in line with its sustainable dividend commitment to shareholders. CelcomDigi chief executive officer Datuk Idham Nawawi said the group is pleased with the encouraging start to 2025. Its first quarter performance delivered growth in revenue, earnings before interest and taxes and net profit. He added that this reflects the continued strength of the group's core business and disciplined execution of its strategic priorities. "We are progressing well in creating pathways for sustained profitable growth through four strategic focus areas – solidifying market leadership, enhancing customer experience, driving operational excellence and investing for the future," he said in a separate statement. CelcomDigi said its network integration and modernisation reached approximately 80 per cent completion as of end-March 2025, with six states fully completed. The group continued to ramp up IT consolidation activities, with 28 out of over 50 systems integrated to date, with a target of achieving approximately 75 per cent of systems integrated by year end. CelcomDigi's retail transformation also continued to advance, with over 50 new digital-concept stores launched to date, resulting in higher sales productivity and enhanced customer engagements. The group is now embarking on the next phase of transforming more than 300 exclusive partner stores. Upon completion, the company will form one of Malaysia's largest branded retail chains of digital products distribution, well-positioned to support Malaysians' evolving digital lifestyles. As a flow-through of cost efficiencies from these integration initiatives, CelcomDigi said it remains on track to deliver steady-state annualised cost savings of around RM700 to RM800 million post-2027. CelcomDigi expects a stronger financial and market performance this year, with most integration-related costs and one-off adjustments recognised in 2024. "CelcomDigi continues to remain committed in distributing dividend at minimum of 80 per cent of its bet profit, subject to availability of its free cash flow and distributable reserves, to be paid quarterly and ensuring sustainable dividend payout," it noted.
The Star
22-05-2025
- Business
- The Star
CelcomDigi records net profit of RM383.78mil in 1Q, declares 3.7c div/share
CelcomDigi CEO Datuk Idham Nawawi — FAIHAN GHANI/The Star KUALA LUMPUR: CelcomDigi Bhd is on course for sustained profitability as it reported an improved first quarter in 2025, alongside progress in its integration and transformation intiaitives. 'We are pleased to report an encouraging start to 2025, with our first quarter performance delivering growth in revenue, earnings before interest and tax, and profit after tax. This reflects the continued strength of our core business and disciplined execution of our strategic priorities," said CEO Datuk Idham Nawawi in a statement. In the first quarter ended March 31, 2025, CelcomDigi posted a net profit of RM383.78mil, up from RM376.46mil in the year-ago quarter, which translated to an earnings per share of 3.27 sen from 3.21 sen previously. The telco reported quarterly revenue of RM3.21bil, an improvement from RM3.17bil in 1QFY24. The board of directors declared a first interim dividend of 3.7 sen per share, with entitlement date on June 13, 2025, and payable on June 30, 2025. According to the group, continued revenue growth in its postpaid, home and fibre and value-added services segments partialy offset the impact from expected softer prepaid revenue, interconnect and 2024 audit adjustments. Service revenue in 1QFY25 was RM2.66bil, representing a slight decline of 1.2% year-on-year (y-o-y). Quarterly postpaid revenue rose 3.2% y-o-y to RM1.07bil on the back of an increase of 340,000 subscribers over the same period to 5.84 million subscribers. The prepaid segment achieved revenue of RM1.06bil, a 5.7% decline over the same quarter in 2024, while the number of subscribers was seen stabilising with an increase of 113,000 subscribers from the fourth quarter of 2024 to 12.98 million. The home and fibre segment recorded 48.1% y-o-y revenue growth to RM55mil. The number of subscribers leapt 65.3% y-o-y to 205,000. According to CelcomDigi, its network integration and modernisation efforts are well underway with a completion rate of about 80% as at end-March 2025. The company continued to ramp up IT consolidation activities, with 28 out of over 50 systems integrated to date, with a target of achieving approximately 75% of systems integrated by year end. CelcomDigi's retail transformation also continued to advance, with over 50 new digital-concept stores launched to date, resulting in higher sales productivity and enhanced customer engagements. The telco is now embarking on the next phase of transforming more than 300 exclusive partner stores. As a flow-through of cost efficiencies from these integration initiatives, the company said it remains on track to deliver steady-state annualised cost savings of RM700 to RM800mil post-2027.
