CelcomDigi Q2 2025 Results: Solid Profit Growth and a Dividend Boost Amidst 5G Transition
CelcomDigi has just unveiled its second-quarter results for 2025, and there’s good news for shareholders: a second interim dividend of 3.8 sen per share is on its way, bringing the year-to-date dividend to 7.5 sen per share. This announcement comes on the back of a strong financial performance, showcasing impressive profit growth.
However, a deeper dive into the numbers reveals a story of strategic shifts, post-merger synergies, and the ongoing complexities of Malaysia’s 5G rollout. Let’s break down the key takeaways from this report for Malaysian investors.
Core Data Highlights: A Strong Bottom Line
CelcomDigi’s profitability has shown significant improvement compared to the same period last year. The company’s focus on operational efficiency and cost management following its merger is clearly paying off.
Profit Before Tax (PBT) for Q2 2025 surged by an impressive 14.8%, while Profit After Tax (PAT) saw a healthy increase of 5.5% compared to Q2 2024.
| Financial Metric | Q2 2025 (RM’000) | Q2 2024 (RM’000) | Growth |
|---|---|---|---|
| Revenue | 3,178,457 | 3,105,933 | +2.3% |
| Profit Before Tax (PBT) | 597,301 | 520,280 | +14.8% |
| Profit Attributable to Owners | 438,938 | 406,020 | +8.1% |
| Earnings per Share (sen) | 3.74 | 3.46 | +8.1% |
Revenue Deep Dive: Devices Drive Growth
While the overall revenue saw a modest increase, the story lies in its components. The growth was primarily fueled by higher device revenue, thanks to successful Postpaid device bundle sales and re-contracting efforts. In contrast, service revenue saw a slight dip, mainly due to a softer Prepaid segment as the company strategically moves away from one-time SIM acquisitions.
Q2 2025 Revenue
RM 3,178 million
Q2 2024 Revenue
RM 3,106 million
The continuous growth in the Postpaid and Home & Fibre segments is a positive sign, indicating a successful strategy in capturing higher-value customers.
Profitability Shines Through Cost Efficiencies
The impressive 14.8% jump in Profit Before Tax is particularly noteworthy because it outpaced revenue growth. This signals strong operational leverage and successful cost management. A key contributor was lower depreciation and amortisation charges, resulting from the full decommissioning of network assets that were impaired post-merger. This is a tangible financial benefit of the integration process.
Q2 2025 Profit Before Tax
RM 597 million
Q2 2024 Profit Before Tax
RM 520 million
Risk and Prospect Analysis: Navigating the 5G Landscape
CelcomDigi’s management has reiterated its guidance for 2025, projecting low single-digit growth in service revenue and a capex-to-total revenue ratio of 14-16%. The company is making good progress on its integration journey, with 84% of network sites consolidated and the RM8 billion NPV synergy outlook remaining intact.
The biggest variable on the horizon is the national 5G strategy. Malaysia is transitioning from a Single Wholesale Network (SWN) to a Dual Wholesale Network (DWN) model. As a major stakeholder in Digital Nasional Berhad (DNB), CelcomDigi faces several challenges:
- Financial Viability of DNB: Ensuring DNB has healthy working capital and the right infrastructure to remain competitive is critical, especially since the second wholesale network is only expected to be fully rolled out by mid-2026.
- Spectrum Allocation: Securing additional spectrum is vital for delivering a high-performance and sustainable 5G service in the long run.
CelcomDigi has expressed its commitment to working with the government and stakeholders to address these hurdles, which will be key to unlocking future growth and maintaining its market leadership.
Summary and Outlook
CelcomDigi’s Q2 2025 report demonstrates a company successfully executing its post-merger strategy. Strong profitability, driven by cost synergies, and a shareholder-friendly dividend policy are clear positives. The growth in high-value Postpaid and Home & Fibre segments provides a solid foundation for the future. However, investors should remain watchful of the evolving 5G landscape and the associated regulatory and operational risks.
Key risks to monitor include:
- 5G Transition Uncertainty: The move to a DWN model and the reliance on DNB’s performance and financial viability present significant challenges.
- Spectrum Allocation: The outcome of future spectrum allocation will be crucial for the company’s long-term competitive positioning in the 5G era.
- Sustaining Service Revenue Growth: Amid intense competition, the ability to grow service revenue, particularly in the mass-market Prepaid segment, will remain a key focus.
From my perspective, this report paints a picture of a company in a successful, albeit complex, transition. The operational synergies from the merger are clearly starting to bear fruit, reflected in the strong bottom-line growth. The key variable remains the national 5G strategy. CelcomDigi’s ability to navigate the DNB partnership and the shift to a dual network will be paramount to its long-term success.
What are your thoughts on CelcomDigi’s strategy? Do you think the growth in Postpaid and Home Fibre can offset the softness in the Prepaid segment?
Share your views in the comments below! We’d love to hear from our community of investors.
