CelcomDigi 2Q Net Profit Rises To RM406.02 Mln, Declares 3.5 Sen Dividend

KUALA LUMPUR, Aug 16 (Bernama) -- CelcomDigi Bhd’s net profit for the second quarter ended June 30, 2024 (2Q FY2024) rose to RM406.02 million from RM343.51 million in the same quarter last year, on the back of service revenue growth and realising merger synergies and benefits.

In a filing with Bursa Malaysia today, the telecommunication company said revenue, however, decreased by 2.0 per cent to RM3.10 billion against RM3.12 billion previously.

Service revenue increased by RM7 million, 0.3 per cent higher compared to the preceding quarter, contributed by postpaid as well as Home & Fibre driven by higher roaming usage and strong new subscribers uptake along with higher bulk SMS revenue and new solution deals in 2Q 2024.

Conversely, prepaid revenue decreased due to a reduced subscriber base from fewer rotational one-time sim acquisitions.

On a cumulative six-month basis, net profit rose to RM782.48 million from RM661.44 million in the same period last year, while revenue narrowed by 0.4 per cent to RM6.28 billion from RM6.30 billion previously, mainly pressured by the core mobile segment.

CelcomDigi declared a second interim dividend of 3.5 sen per share, amounting to RM411 million, payable on Sept 30, 2024.

The filing said the company surpassed the halfway point nationwide in its network integration and modernisation programme, ahead of schedule in the three-year post-merger transformation journey.

IT and retail transformations are also in full force, to drive business transformation, operational and customer excellence by enabling a better digital experience for all.

Meanwhile, CelcomDigi has submitted a proposal to build Malaysia’s second 5G network, while continuing to drive 5G adoption and the digitalisation of Malaysian enterprises and consumers.

“We are maintaining our guidance on service revenue growth of low single-digit increase. This growth highlights the early success of our initiatives, positioning the company for stronger revenue growth in the second half of 2024.

“Earnings before interest and tax (EBIT) is expected to decline by single digit due to an organisation adjustment, resulting in a one-time cost of RM140 million. We are proactively working to mitigate the impact of this cost,” it said.

 In a separate statement, CelcomDigi said it completed network integration and modernisation efforts in Penang and surpassed the halfway point nationwide, setting it ahead of schedule in building Malaysia’s leading digital network.

Within a year, it exceeded 50 per cent of its targeted nationwide upgrades with over 8,500 sites modernised at the end of July 2024, in what was expected to be a three-year exercise, proving its ability to roll out mobile network infrastructure projects fast and at scale.

At this rate, CelcomDigi is set to complete 75 per cent of network upgrades by the end of 2024, placing the company in the prime spot to deploy Malaysia’s second 5G network, it said.

In the quarter, the company invested RM518 million in capital expenditure to deliver on its network and IT integration initiatives, it added.

-- BERNAMA