CelcomDigi to increase capex for integration efforts in in 4Q

KUALA LUMPUR: CelcomDigi Bhd is expecting to accelerate capex investments in the final quarter of 2023 as it continues to deliver on its merger integration efforts.

The telco said it is on track with overall merger integration efforts with its network integration and modernisation reaching more than 4,400 sites as at end October 2023.

“We are happy with the progress made on overall business integration, and especially in delivering Malaysia’s widest and fastest network through solid delivery of our network integration and modernisation programme.

“Our focus on market execution and prudent cost management contributed to our solid performance this quarter, with subscriber growth from all segments and improvements in profitability margins,” said CEO Datuk Idham Nawawi in a statement.

In the third quarter of 2023, CelcomDigi recorded a net profit of RM455.72mil, up from RM264.48mil in the preceding year quarter, representing an earnings per share of 3.88 sen compared to 3.4 sen.

It said revenue rose to RM3.1bil from RM1.53bil in the comparative quarter.

The company declared a third interim dividend of 3.3 sen per share amounting to RM387mil, in line with its progressive dividend commitment to shareholders.

Over the nine-month period, CelcomDigi’s net profit was RM1.12bil, up from RM720.67mil in 9MFY22, while revenue jumped to RM9.41bil from RM4.59bil.

Highlighting its improved performance, CelcomDigi said service revenue in 3Q was up 0.1% year-on-year (y-o-y) to RM2.71bil from steady growth in prepaid, home and fibre and other segments, as well as solid subscriber additions.

It said postpaid revenue softened 0.8% quarter-on-quarter (q-o-q) to RM1.26bil due to lower usage and further regulatory curbs on bulk messaging traffic but prepaid revenue grew 0.2% q-o-q to RM1.15bil on solid subscriber additions and robust data usage.

The company’s blended average revenue per user (Arpu) stood at RM40 with postpaid and prepaid Arpu at RM67 and RM28 respectively.

Home fibre revenue grew 28.6% y-o-y to RM45mil during the current quarter on a steady take-up in the new fibre add-ons and high-speed plans for smart home solutions.

3QFY23 earnings before interest, tax, depreciation and amortisation (Ebitda) stood at RM1.57bil, up 5.9% and 7.2% underscored cost optimisation efforts, to deliver an Ebitda margin of 50.5%.