CelcomDigi Berhad reported improved growth performance in Q2 FY2024, driven by effective market execution and cost management. The company saw higher net profit, with EBIT and PAT improving 14.1% Q-Q and 8.8% Y-Y and 12.1% Q-Q and 19.5% Y-Y, respectively. Service revenue rose 0.3% Q-Q to RM2,695 million. The company declared a second interim dividend of 3.5 sen per share, maintaining its sustainable dividend commitment. CEO Datuk Idham Nawawi emphasized the company’s transformation efforts and commitment to serving customers in the 5G-AI era.
CelcomDigi completed network integration and modernization in Penang, exceeding 50% of its nationwide upgrades with over 8,500 sites modernized by end July 2024. The company aims to complete 75% of network upgrades by end 2024, positioning itself to deploy Malaysia’s second 5G network. In Q2, the company invested RM518 million in CAPEX for network and IT integration initiatives. CelcomDigi also opened its ninth new retail store in Alor Setar, with plans to transform 40 stores by year-end to offer a superior retail experience.
The company’s strong 5G and AI capabilities are driving innovation leadership, operating the widest 4G network in Malaysia. It is ready to commission one of the largest advanced 5G networks in the region with its modern network infrastructure. CelcomDigi’s AI Experience Centre showcases 45 use cases, accelerating the development of AI solutions with global and local ecosystem players. The company shared a 5-year ESG strategy to build a sustainable digital society for Malaysia, aligning with stakeholders on sustainability matters.
Financially, Q2 2024 saw total revenue of RM3,106 million, with EBIT at RM655 million (+14.1% Q-Q, +8.8% Y-Y) and PAT at RM416 million (+12.1% Q-Q, +19.5% Y-Y). Postpaid subscribers grew, reaching 7.1 million, with revenue at RM1,273 million. Prepaid subscribers declined, amounting to 12.9 million, with revenue at RM1,111 million. Home and Fibre segment showed positive momentum with subscriber growth and revenue increase.
In summary, CelcomDigi’s Q2 FY2024 results showcased strong financial performance, driven by service revenue growth, network modernization efforts, and retail transformation initiatives. The company’s commitment to sustainable dividend payouts, 5G development, and ESG strategy positions it as a key player in Malaysia’s digital transformation journey. More information on the company’s ESG commitments may be found here.
Financial and Operational Highlights
| RM’m | Q2 2024 | Q1 2024 | Q2 2023 | Q-Q | Y-Y |
| Total Revenue | 3,106 | 3,171 | 3,123 | -2.0% | -0.5% |
| Service Revenue | 2,695 | 2,688 | 2,707 | 0.3% | -0.4% |
| EBIT | 655 | 574 | 602 | 14.1% | 8.8% |
| PAT | 416 | 371 | 348 | 12.1% | 19.5% |
| CAPEX | 518 | 318 | 252 | 62.9% | 105.6% |
- Q2 FY2024 EBIT was RM655 million, at +14.1% Q-Q and +8.8% Y-Y, benefiting from improved
EBITDA and lower depreciation. - PAT was RM416 million, at +12.1% Q-Q and +19.5% Y-Y, driven by the flow-through of improved EBIT and the tax incentive recognised in the current quarter, partly offset by the prior quarter’s benefit from a deferred tax writeback.
- Postpaid and Prepaid: Growth in Postpaid whilst Prepaid showed resilient ARPU despite decline in subscriber base.
- Postpaid subscribers grew +118K Q-Q and +344K Y-Y in Q2 FY2024, reaching 7.1 million subscribers, driven by strong new subscribers’ uptake from attractive packages and competitive pricing. Postpaid revenue was RM1,273 million, +0.6% Q-Q and +0.4% Y-Y, driven by an expanding subscriber base, higher roaming traffic, and increased data demand. ARPU stood at RM65.Â
- Prepaid subscribers were –378K Q-Q and -648K Y-Y in Q2 FY2024, amounting to 12.9 million subscribers, while revenue was RM1,111 million, -0.9% Q-Q and –2.9% Y-Y, impacted by reduced subscriber base from fewer rotational one-time sim acquisition. ARPU stood at RM28.
- Home and Fibre: Relentless efforts leading to continuous performance growth.
- Continued positive momentum on subscriber growth at +18K Q-Q and +49K Y-Y, totalling 163K subscribers.
- Revenue was RM51 million at +10.4% Q-Q and +21.5% Y-Y, driven by the rise in subscribers.Â
Click here for CelcomDigi’s CEO’s Reflections and more on the company’s 2Q 2024 performance.