In This Article:
-
Total Revenue: MYR12.7 billion for 2024, stable year-on-year.
-
Service Revenue: MYR10.8 billion for FY24, slight decline of 0.6% year-on-year.
-
Profit After Tax (PAT): MYR1.4 billion reported; MYR1.8 billion normalized, reflecting an 11.6% year-on-year growth.
-
EBIT: MYR2.33 billion reported; MYR2.8 billion normalized, with a 25.9% EBIT margin over service revenue.
-
CapEx Intensity: 18.7% for 2024, including JENDELA projects; normalized to 18% without JENDELA.
-
Subscriber Base: 20.4 million total subscribers, with growth in postpaid and fiber segments.
-
Dividend: MYR0.0037 for Q4, totaling MYR0.0143 for 2024.
-
Free Cash Flow: MYR757 million for FY24, MYR0.0064 per share.
-
5G Adoption: 31% of subscribers provisioned for 5G.
-
Home and Fiber Revenue Growth: 14.3% quarter-on-quarter, 48% year-on-year.
-
Enterprise Mobile Revenue Growth: 5.3% increase in Q4.
-
Cost Savings: Expected annual cost savings of MYR700 million to MYR800 million post-2027.
Release Date: February 13, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
-
CelcomDigi Bhd (XKLS:6947) reported stable total revenue of MYR12.7 billion for 2024, indicating resilience in market conditions.
-
The company achieved a 1.2% quarter-on-quarter improvement in total service revenue, with growth in key segments such as home and fiber, postpaid, and enterprise mobile.
-
Integration and transformation initiatives are progressing well, with 75% of network modernization completed and significant IT integration milestones achieved.
-
The company expects annual cost savings of MYR700 million to MYR800 million post-integration, enhancing long-term profitability.
-
CelcomDigi Bhd (XKLS:6947) has a strong subscriber base of over 20 million, with a notable increase in postpaid subscribers and stable prepaid ARPU.
Negative Points
-
The company reported an 11% year-on-year decline in profit after tax due to one-off adjustments and non-cash impairments.
-
Prepaid revenue declined due to low activations and consolidation of SIM cards, impacting overall revenue growth.
-
CapEx intensity was higher than expected at 18.7% due to investments in JENDELA projects, slightly above the guided range of 15% to 18%.
-
There are ongoing costs related to integration efforts, with significant expenses expected to continue into 2025, particularly in IT consolidation.
-
The company faces competitive pressures in the home and fiber segment, impacting ARPU and necessitating strategic adjustments.
Q & A Highlights
Q: Can you clarify the discrepancy in net profit growth, as the previous year's release indicated a normalized profit of MYR2.2 billion, implying a 19% decline in net profits? A: Dennis Chia, CFO: The MYR2.2 billion figure from 2023 included accelerated depreciation due to integration efforts. For 2024, the normalization considers the impairment of ROU assets and organizational restructuring charges. The accelerated depreciation is now part of the ongoing steady-state performance, hence not considered in 2024's normalization.