Key Financial Highlights: Q1 2025 Performance

CelcomDigi delivered a robust performance for the first quarter of 2025, showcasing resilience and strategic execution. Here’s a breakdown of the core financial metrics compared to the same period last year:

The stable revenue was primarily driven by higher device sales, particularly through device bundle contracts, alongside continued growth in the Postpaid and Home & Fibre segments. The Home & Fibre segment, in particular, saw a significant 56% year-on-year increase in subscribers, reaching 227,000. However, overall growth was moderated by a strategic shift away from one-time Prepaid SIM acquisitions and the timing of revenue recognition for certain solution-related services.

The impressive growth in PBT and PAT was largely influenced by lower depreciation charges, which positively impacted Earnings Before Interest and Tax (EBIT). While total costs did see a slight increase of 2.0% (RM37 million) due to higher device costs and increased traffic, these were partially offset by reduced staff costs following a voluntary separation scheme in Q1 2024. The flow-through impact on PAT was, however, partially offset by a tax provision reversal recognized in the corresponding quarter of the preceding year.

This indicates a positive trend in profitability for shareholders, reflecting the overall improvements in the company’s financial performance.

Operational Performance and Strategic Initiatives

Beyond the numbers, CelcomDigi’s operational progress highlights its commitment to strengthening its market position:

• Subscriber Growth: The company recorded a 1.3% year-on-year growth in its total subscriber base, indicating continued customer acquisition and retention efforts.
• Network Integration: A significant milestone, 78% of network integration and modernization has been completed. This is crucial for enhancing network quality and efficiency.
• System Harmonisation: The first phase of harmonizing Celcom and Digi’s core billing and customer relationship management (CRM) systems has been successfully implemented, paving the way for an improved customer experience.
• Retail Transformation: CelcomDigi has modernized 52 retail stores ahead of target, leading to improved sales productivity in these new concept stores.

Navigating Risks and Charting Future Prospects

As CelcomDigi progresses into 2025, it builds on a solid foundation from its merger integration. The company anticipates a stronger financial and market performance this year, with the majority of integration-related costs and one-off adjustments having been recognized in 2024.

Strategic Focus Areas:

• Market Leadership: Reinforcing its position as a market leader.
• Customer Experience: Elevating customer experience through digital value-added services.
• Operational Efficiency: Enhancing efficiency through cost structure optimization.
• Innovation: Continued investment in future capabilities and innovation.

Outlook and Guidance for FY2025:

The company remains committed to distributing a minimum of 80% of its PAT as dividends, subject to free cash flow and distributable reserves, ensuring a sustainable payout.

Regulatory and Corporate Updates:

CelcomDigi continues to comply with undertakings given to the Malaysian Communications & Multimedia Commission (MCMC) as part of its merger approval:

• Spectrum Divestment: The divestment of 20MHz in the 2100MHz spectrum band was completed in November 2024, with the remaining two bands (1800MHz and 2600MHz) on track for completion by November 2025.
• MVNO Wholesale Remedy: The independent MVNO wholesale business unit has been established, and access to wholesale services for existing and new MVNOs is being maintained at terms no worse than existing agreements, a commitment that will continue until November 2025.
• Yoodo Divestment: The Yoodo brand was discontinued in August 2024, as proposals for divestment did not meet the Group’s expectations.
• Exclusive Distributor Arrangements: Exclusive arrangements with distributors in key states have been removed, with no new exclusive arrangements entered into, fulfilling the undertaking until November 2025.
• Single Corporate Brand: All prepaid and postpaid products are now positioned under the single CelcomDigi corporate brand, with related systems and processes completed in FY2024.

Furthermore, the company provided updates on its investment in Digital Nasional Berhad (DNB) and the shareholders’ agreement, which includes the acquisition of U Mobile shares by participating parties and the variation of the MoF Inc. put option exercise period.