· Growth recorded from enhanced customer offerings and stronger network quality
· Integration efforts underway, focused on bringing improved customer experience
· Declared 3.2 sen interim dividend on back of healthy free cash flow
PETALING JAYA, 24 May 2023 – CelcomDigi Berhad (CelcomDigi) today announced its first quarter results for the Financial Year 2023 (Q1 FY2023), marking the company’s first full quarter of combined financial reporting post-merger.
The company recorded positive topline and bottom-line growth, generating a healthy free cash flow (FCF) of RM696 million. Service revenue grew +0.9% Y-Y to RM2,670 million, while EBITDA grew +3.4% Y-Y to RM1,511 million with a solid EBITDA margin of 47.5%. Normalised profit after tax (PAT), excluding the effects of accelerated depreciation (non-cash items), rose +16.0% Y-Y to RM579 million.
In the quarter under review, CelcomDigi accelerated its integration activities and continued to focus on bringing improved customer experience through enhanced products and services. After an accelerated CAPEX spend in Q4 FY2022 during the integration planning phase, the company further invested RM108 million in CAPEX in Q1 FY2023 to cater for increased network capacity requirements.
The company declared a first interim dividend of 3.2 sen per share, amounting to RM375 million.
Network integration and modernisation efforts underway
The company started pilot network integration efforts in select clusters and full-speed network integration will commence from Q2 FY2023 onwards, where the company plans to re-invest 15%-18% of total revenue in CAPEX to support both existing networks and the new modernised integrated network.
The ambition is to deliver the widest 4G network with an increase in population coverage from 96% to 98% nationwide, with the latest 4G LTE and 5G-ready technology to provide improved quality and experience to all subscribers.
New, exciting offers to stay connected for CelcomDigi’s 20.2 million customers
CelcomDigi introduced several offerings for both Celcom and Digi Postpaid and Prepaid customers, including the new Xpax Postpaid Unlimited 75, enabled free 5G trial access and 5G device bundling, and offered festive discounts on high-speed internet passes, among others. Higher take-ups in device bundling offers and internet passes contributed to the company’s strong subscriber growth with net adds of 594k Y-Y bringing total subscribers to 20.2 million, and a sustained blended ARPU for the quarter.
The company also launched new CelcomDigi Home Fibre plans, providing ultra-fast home internet and offering additional savings when paired with selected Celcom or Digi Postpaid plans, yielding revenue, subscribers, and ARPU growth for its Home Fibre segment.
CelcomDigi also made it easier and convenient for its customers to stay connected by ensuring all its 534 Celcom Bluecubes and Digi Stores along with its exclusive partners’ touchpoints nationwide were able to cater to the needs of both Celcom and Digi customers seamlessly. Customers can now cross-access 11 types of sales and service transactions, from bill payments and plan changes to SIM replacements and prepaid reloads. New Postpaid and Prepaid subscribers of both Celcom and Digi can also complete their plan registrations, MNP registrations, or make Internet purchases at all Celcom Bluecubes and Digi Stores.
For the Enterprise segment, the company refreshed its corporate solutions under CelcomDigi Business, underscoring the company’s commitment to help enterprises of all sizes boost their business efficiency and productivity with Mobile, Fixed, IoT, Cloud, and Cybersecurity solutions.
CelcomDigi’s Chief Executive Officer, Datuk Idham Nawawi said, “We are pleased with the positive results in Q1 FY2023, having performed in line with our guidance. We maintain strong fundamentals to operate as a high-performing company, practicing operational excellence. We are accelerating integration efforts across the board, focusing on bringing the benefits of the merger to our customers in the shortest time possible. Organisational integration efforts are on-track, and the company has been operating as a single-entity since Day 1, with a single management team and sharp focus on bringing the best of both brands with improved offerings, network and retail experiences to our 20.2 million customers.”
“We are excited on the prospect of 5G and look forward to playing a more active and direct role in implementing the country’s 5G network, on the back of delivering the widest, most modern 4G network in Malaysia. We also remain committed to driving growth in convergence and enterprise solutions, leveraging new technologies and partnerships in 5G, AI and IoT solutions – there is a lot that customers can expect of us going forward,” he added.
Against the backdrop of rising scams and frauds besieging Malaysian society, CelcomDigi heightened its efforts in advocating digital safety and skills, collaborating with CyberSecurity Malaysia (CSM), and the Malaysian Crime Prevention Foundation (MCPF) to launch the Anti-scam National Awareness campaign (Jelajah Anti-Scam Nasional).
Financial Highlights
Operational Highlights
