Celcom Q3 2014 revenue dips 1%, data revenue surges 20%

• Mobile Internet revenue achieve 58.7% (y-o-y) growth to RM585 million
• Optimistic after network optimisation and IT transformation exercises

CELCOM Axiata Berhad reported third quarter 2014 revenue of RM1.93 billion, an approximately 1% dip from the previous quarter’s RM1.95 billion.
 
However, overall data revenue grew 20.4% to RM1.2 billion, contributing 20.9% of Celcom’s year-to-date (YTD) total revenue of RM5.8 billion compared with 16.7% last year, the company said in a statement.
 
Mobile Internet revenue achieved a 58.7% (y-o-y) growth to RM585 million, illustrating its continuous effort to be at the forefront of the mobile Internet segment, Celcom said.
 
Its Q3 EBITDA (Earnings Before Interest, Tax, Depreciation and Amortisation) showed a marginal decrease to RM807 million with an EBITDA margin of 42%.
 
Quarterly PATAMI (Profit After Tax, Amortisation And Minority Interests) stood at RM493 million.
 
[RM1 = US$0.29]
 
During the period under review, smartphone users increased significantly to 5.41 million users from 3.75 million users in Q3 2013. Total smartphone users makes up 40.7% of Celcom’s total subscribers in Q3 2014.
 
Data is expected to grow, driven by higher smartphone adoption amongst customers. Celcom said its offering of affordable smartphones and attractive packages is also set to contribute to the proliferation of smartphones amongst users.
 
The telco said it has successfully completed its two-year IT transformation exercise that facilitates seamless integration across multiple channels to enhance customer experience, which is key for Celcom to stay ahead of the competition.
 
Following the completion of the exercise, Celcom said it saw overall improvements in the stability of the platforms and environment which led to greater confidence in its operating systems, enabling it to roll out new products and services faster and more aggressively to the market.
 
Celcom said it was optimistic about its business outlook in the next quarter following the success of the network optimisation programmes, alongside the IT transformation exercise.
 
“We are confident that our IT transformation exercise will greatly help us to improve efficiencies and maximise growth opportunities,” said its chief executive officer Shazalli Ramly (pic).
 
“It has been a challenging quarter not only for us but the whole industry. Nevertheless, we will continue to increase productivity across all areas through our strategic initiatives in order to drive positive outcomes and improve our business performance,” he added.
 
Celcom said it will place greater emphasis on data services in the next few years following its IT transformation exercise.
 
It recently signed an agreement and formed a joint venture company with SK Planet, the leading e-commerce player in South Korea.
 
The purpose of the collaboration is to explore, seek and pursue e-commerce business opportunities in Malaysia. The collaboration enables Celcom to further participate in the digital industry and build long-term capabilities in the digital space.
 
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