CelcomDigi’s Q4 net profit triples to RM435 million
Published on: Tuesday, February 20, 2024
By: Bernama
CelcomDigi has declared a fourth interim dividend of 3.5 sen per share or an FY2023 total dividend of 13.2 sen per share.
PETALING JAYA: CelcomDigi Bhd’s net profit almost tripled to RM435.11 million in the fourth quarter ended Dec 31, 2023 (Q4 2023), compared to RM127.36 million in the same period a year earlier.
In a filing with Bursa Malaysia today, the telecommunications service provider attributed its higher earnings mainly to lower depreciation following the reduction in the fair value of net assets in the final assessment of the purchase price allocation exercise during the quarter.
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Meanwhile, revenue for the quarter increased 50% to RM3.27 billion from RM2.18 billion previously, driven by increased device sales and service revenue.
For the full year (FY2023), CelcomDigi’s net profit jumped to RM1.55 billion from RM848.03 million in the previous year as revenue surged to RM12.68 billion from RM6.77 billion, mainly driven by higher device sales and higher service revenue.
“The growth in service revenue of 0.4% to RM10.86 billion was attributed to higher revenues from prepaid and home fibre segments, alongside the expansion of the subscriber base.
“Postpaid segment was impacted by the reduction of interconnect rate effective March 2023, despite being cushioned by better roaming activities,” it said.
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On the outlook for 2024, CelcomDigi said it would remain steadfast in expediting the network integration and modernisation initiatives.
“A transformative journey for its operating models is under way, placing emphasis on operational excellence and prioritising customer experience. Consequently, higher integration costs are expected,” it added.
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Barring unforeseen circumstances and the uncertain impact of 5G dual network implementation, CelcomDigi expects its service revenue to record a low single-digit increase with a capex-to-total revenue ratio of 15% to 18%.
In a press statement, CelcomDigi said it has successfully achieved all first-year integration milestones in 2023 enabling the company to realise gross synergy of over RM300 million in FY2023.
CelcomDigi completed 35% of its network integration and modernisation target, ahead of its initial plan of 30% by the end of 2023.
The company has also modernised over 5,600 sites as of December 2023, enabling customers in post-consolidation areas to now enjoy improved download speeds by 20% to 26%, and better signal strength by 13% to 16%, it said.
In the fourth quarter of last year, CelcomDigi had invested RM1.01 billion in capital expenditure (capex), bringing total capex to RM1.75 billion, translating into a capex intensity of 13.8% in FY2023.
CelcomDigi CEO Idham Nawawi said the company made significant progress integrating many business areas, achieving this with minimal disruption to the customer experience while competing effectively to lead in the market.
“This solid market execution and operational excellence enabled us to deliver a strong performance and shareholder value in line with our FY2023 guidance,” he added.
CelcomDigi declared a fourth interim dividend of 3.5 sen per share or an FY2023 total dividend of 13.2 sen per share, in line with its progressive dividend commitment to shareholders.
As at 2.45pm, CelcomDigi’s share price was up one sen or 0.2% at RM4.34, giving it a market capitalisation of RM50.92 billion.
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