Three year transformation yields improved performance: Celcom

• Revenue ex-device rose by 3.9% YTD to US$1 million
• EBITDA increased +12.4% to US$507,000 underpinned by cost management

Celcom Axiata Bhd’s transformation journey that began in January 2020 has delivered a strong performance across all key metrics, consistent quarterly EBITDA margin growth and substantial network service improvements. 

In a statement, the telecommunications firm said significant improvements in distribution, product, and go-to-market (GTM) processes over the last 36 months have resulted in improved competitiveness and strong subscriber growth. 

It said its GTM revamp combined with a strong focus on operational excellence and cost discipline has resulted in consistent improvements in revenue, profit, and market share growth.

It said its strong performance continued in the third quarter of 2022, with the company continuing its upward momentum as revenue ex-device rose by 3.9% YTD to US$1 million (RM4,578 million).  

This is driven by prepaid revenue and contribution from new enterprise subsidiaries, Celcom said. 

The telco added that EBITDA increased +12.4% to US$507,000 (RM2,288 million), underpinned by on-going cost management resulting in lower opex and higher debt recovery, while PATAMI rose by 65.3% to US$189 million (RM856 million). 

This is despite being offset by higher taxes from cukai makmur, it said.  

It added that in a very competitive market, both prepaid and postpaid average revenue per user (ARPU) remained stable at US$6.60 (RM30) and US$17.70 (RM80) respectively. 

[RM1 = US$0.222]

Chief executive officer Idham Nawawi (pic) said the company’s strong performance over the quarters is the result of its strategic transformation programme that has touched every part of the organisation. 

“This is from GTM to how we plan and run our network, including how we manage our cost base.

“We delivered great financial performance in all key metrics, whilst gaining market share in a very competitive market and a challenging macro environment,” he said.

Over the past three years, Celcom said it has invested over RM1.8 billion to cater for a significant growth in traffic demand. 

This has resulted in its YTD data traffic increasing by 73% to 1.778 TB compared to 1.025 TB three years ago, Celcom said.

Meanwhile its average monthly usage per user increased by 75% to 26.2GB in the third quarter of 2022 compared to 14.9GB in the first quarter of 2020. 

The data utilisation trend is currently stabilising with a slight increase of 5.1% compared to the previous quarter, it said.

Continuous network investments also focused on multiple network enhancement initiatives that are aligned with Jalinan Digital Negara (JENDELA). Supporting over 14 million users, Celcom’s widest 4G and 4G LTE-A population coverage stands at 96.35% and 90.29% respectively. 

To date, its network investments have resulted in increased 4G LTE pop coverage nationwide, with over ten states and three Federal Territories having over 97% 4G LTE pop coverage. 

Celcom said it has also improved 4G LTE pop coverage within rural areas in Sabah, Sarawak, and Pahang, with a total of over 4,400 sites upgraded with new capacities, coverage enhancements, and optimisation.

Idham said addressing surging data traffic growth remains Celcom’s top priority as it aims to be a reliable service provider that delivers consistent network performance to its customers.

“Celcom’s national network improvements include upgrading more 7,000 sites, and expanding more than 2,000km of fibre nationwide.

“Additionally, we have upgraded our network core capacity to 3.3Tbps from 0.8Tbps, including our core networks in Sabah and Sarawak,” he said, adding that Celcom has also implemented a range of network optimisation activities across the country.

Idham said Celcom’s transformation journey has made the organisation stronger, leaner, and resilient and it enters the merger with Digi with a positive momentum. 

“We look forward to the merged company to continue delivering quality and affordable services, connecting more Malaysians nationwide,” he said.