Celcom’s business update announces positive growth for Q2 2017

Even in a tough economy, Celcom Axiata Berhad has emerged with positive growth and solid performance overall with better than the industry’s average growth with quarter-on-quarter (QoQ) service revenue at RM1,495 billion which is an increase of 1.4%  and total revenue at RM1,621 billion which is a 0.7% bump up from the previous quarter. Celcom’s data revenue improved significantly with a 27.6% increase year-on-year to RM706 million and contributed 43.5% of the company’s total revenue. Data consumption has increased as well with a 23.2% quarter-on-quarter to 6.2GB per active user per month along with higher smartphone penetration of 69% from 66% QoQ.

In terms of the bottom line, Celcom saw a 7.2% increase QoQ for normalised earnings before interest, tax, depreciation and amortisation at RM630 million from last quarter’s sum of RM587 million. For profit after tax, amortisation and minority interests, Celcom delivered a figure of RM331 million which is a healthy 22.9% increase QoQ from RM269 million. There was however a 3.1% decline in its subscriber base from 10.25 million subscribers down to 9.93 million subscribers though this was ascribed to prepaid subscriber churn.

The overall success of the quarter was attributed to Celcom’s array of initiatives that include being the pioneer for introducing Rich Communication Services (RCS), introducing their Video Walla and Music Walla packages, their new student oriented Xpax KAWKAW Squad packages and being the first in the coutnry to introduce Lighning Fast LTE with speeds up to and beyond 400mbps. For more details and to peruse the report in detail swing by http://axiata.listedcompanycom/misc/Axiata_Presentation_2Q17.pdf.

From left: Michael Kuehner, CEO, Celcom Axiata Berhad, Jennifer Wong, Chief FInancial Officer, Celcom Axiata Berhad and Azwan Khan Osman Khan, Deputy Chief Executive Officer, Business Operations, Celcom Axiata Berhad.