Celcomdigi (CDB) Q2 2024 earnings summary

Executive summary

• Achieved revenue and net profit growth in Q2 2024, with strong performance in Postpaid and Home & Fibre segments, and effective market execution and cost management.

• Integration and transformation post-merger are progressing well, with network and IT integration ahead of schedule and over RM700 million gross synergy in 1H24.

• Declared a second interim dividend of 3.5 sen per share, totaling RM411 million, maintaining a sustainable dividend policy.

• Retail transformation underway, with nine new concept outlets launched and plans to transform 40 stores by year-end.

• Network integration surpassed halfway nationwide, with over 8,500 sites modernized and 75% of upgrades targeted by end 2024, positioning for Malaysia's second 5G network.

Financial highlights

• Q2 2024 revenue was RM3,106 million, down 2.0% quarter-on-quarter and 0.5% year-over-year; service revenue at RM2,695 million, up 0.3% quarter-on-quarter.

• EBIT rose 14.1% quarter-on-quarter and 8.8% year-over-year to RM655 million; PAT increased 12.1% quarter-on-quarter and 19.5% year-over-year to RM416 million.

• EBITDA for Q2 2024 was RM1,396 million, up 3.6% quarter-on-quarter; EBITDA margin at 44.9%.

• CAPEX in Q2 2024 was RM518 million, up 62.9% quarter-on-quarter and 105.6% year-over-year, supporting network and IT integration.

• Declared second interim dividend of 3.5 sen per share, payable 30 September 2024.

Outlook and guidance

• Service revenue growth guidance maintained at low single digit for FY2024; EBIT expected to decline single digit due to a one-time RM140 million organisational adjustment.

• Capex-to-total revenue ratio guided between 15% and 18% for the year.

• On track to complete 75% of network upgrades by end 2024, supporting dual 5G network transition and digital ambitions.

• Targeting RM8 billion net NPV synergies by 2027.

• Committed to a comprehensive 5-year ESG strategy for a sustainable digital society.