Celcomdigi (CDB) Q1 2025 earnings summary

Executive summary

• Achieved year-over-year growth in total revenue, EBIT, and profit after tax in Q1 2025, driven by strong performance in postpaid, Home & Fibre, and enterprise segments, while prepaid faced ongoing challenges.

• Integration and transformation initiatives in network, IT, and retail are progressing as planned, enhancing customer experience and operational efficiency.

• Disciplined cost management and operational excellence initiatives have supported margin improvement and synergy realization.

• Declared a first interim dividend of 3.7 sen per share, maintaining a sustainable dividend commitment.

• Achieved ~RM1.6b net synergies since integration, with 5-year NPV synergies estimated at RM8b–10b.

Financial highlights

• Q1 2025 revenue was RM3,209 million, up 1.2% year-over-year; EBIT was RM696 million, up 21.3%; PAT was RM388 million, up 4.6%.

• Adjusted for non-recurring items, EBIT was RM758 million and PAT was RM434 million.

• EBITDA was RM1,348 million, with a margin of 42.0%.

• Service revenue was RM2,655 million, up 1.2% year-over-year; CAPEX was RM148 million, with CAPEX intensity at 4.6%.

• Total subscribers reached 20.66 million, up 190k year-over-year.

Outlook and guidance

• Service revenue and EBIT are expected to grow at a low to mid single-digit rate for FY2025, excluding non-recurring items.

• On track to achieve RM700–800 million in annualized cost savings post-2027 from integration initiatives.

• CAPEX intensity guided at 14%–16% for the year.

• Dividend payout policy maintained at a minimum of 80% of PAT, subject to free cash flow and reserves.

• Focus remains on market leadership, customer experience, operational efficiency, and investment in innovation.