CelcomDigi Berhad (CelcomDigi) has announced its financial results for the second quarter of the Financial Year 2024 (Q2 FY2024), showcasing significant growth driven by effective market strategies and cost management. The company’s ongoing transformation and integration efforts across its product lines, network, IT, retail, and innovation sectors have progressed as planned.
In Q2 FY2024, CelcomDigi achieved notable performance improvements with an increase in net profit, fueled by service revenue growth and the realization of merger synergies. Earnings Before Interest and Tax (EBIT) rose by 14.1% quarter-over-quarter (Q-Q) and 8.8% year-over-year (Y-Y) to RM655 million. Similarly, Profit After Tax (PAT) saw a 12.1% Q-Q and 19.5% Y-Y increase, reaching RM416 million. These results underscore the company’s strong underlying profitability. Service revenue grew by 0.3% Q-Q to RM2,695 million, driven by steady performance in its Postpaid (+0.6% Q-Q) and Home & Fibre (+10.4% Q-Q) segments. The company ended the quarter with a total of 20.2 million subscribers.
CelcomDigi has declared a second interim dividend of 3.5 sen per share, totaling RM411 million, maintaining consistency with the previous two quarters and reflecting its commitment to sustainable shareholder returns.
CEO Datuk Idham Nawawi commented, “Q2 FY2024 was a period of continued transformation and integration while achieving sustainable growth in both top and bottom lines. We have refreshed our product portfolio and introduced new retail stores, enhancing the customer experience with new connectivity solutions for work, play, and home. Our new distribution model has improved efficiency in serving our customers and leveraging our modern network.”
He added, “Our business is robustly transforming to meet the needs of consumers and enterprise customers in the new 5G-AI era. We are committed to supporting the government’s dual network transition and accelerating Malaysia’s 5G-AI ambitions. We have submitted a strong proposal to build a high-performance 5G network and are prepared to commence deployment immediately, aiming to complete it swiftly for the benefit of all Malaysians. We remain dedicated to creating a thriving 5G ecosystem for the nation.”
Advancements in Transformation and Integration
CelcomDigi has made significant strides in its network integration and modernization efforts, having completed work in Penang and surpassed the halfway point nationwide. As of July 2024, the company has modernized over 8,500 sites, accelerating its timeline for what was initially a three-year project. The company aims to complete 75% of network upgrades by the end of 2024, positioning itself to deploy Malaysia’s second 5G network. In this quarter, CelcomDigi invested RM518 million in capital expenditure (CAPEX) for network and IT integration initiatives.
The company also inaugurated its ninth new retail store in Alor Setar, Kedah, with plans to revamp 40 stores by year-end. These new fully branded stores are part of CelcomDigi’s retail transformation program, merging existing Celcom Bluecubes and Digi Stores into unified CelcomDigi outlets. Designed to meet evolving customer needs, the new stores feature the latest products and devices, advanced retail experiences, and a re-trained frontline team dedicated to delivering superior customer service in the digital age. This initiative complements other post-merger transformation efforts aimed at enhancing channel growth and consumer engagement.
