Celcomdigi (CDB) Q3 2024 earnings summary

Executive summary

• Achieved strong profitability in Q3 2024, with EBIT up 17.7%–18% and PAT up 5.8%–6% quarter-on-quarter, driven by integration and transformation initiatives across retail, network, and IT.

• Revenue grew 0.6% quarter-on-quarter and 0.7% year-on-year, reaching RM3,126 million, supported by Home & Fibre and postpaid growth.

• Declared a third interim dividend of 3.6 sen per share, the highest since the merger, totaling RM422 million and payable 23 Dec 2024.

• Network integration and modernisation nearly 70% complete, targeting 75% by year-end.

• Subscriber base reached 20.26–20.3 million, with blended ARPU of RM41.

Financial highlights

• Q3 2024 EBIT: RM771 million, up 17.7% Q-Q and 10.9% Y-Y; PAT: RM440 million, up 5.8% Q-Q but down 4.1% Y-Y.

• Total revenue: RM3,126 million, up 0.6% Q-Q and 0.7% Y-Y; service revenue: RM2,689 million, down 0.2% Q-Q and 0.9% Y-Y.

• EBITDA margin for Q3 2024: 48.3%; EBIT margin: 24.7%.

• CAPEX for the quarter was RM384 million, down 25.9% Q-Q.

• Basic EPS for Q3 2024: 3.72 sen; YTD: 10.39 sen.

Outlook and guidance

• Revenue and service revenue for FY2024 expected to remain flat or slightly decrease due to SIM consolidation and reduced focus on one-time SIMs.

• EBIT projected to see a single-digit decrease; capex-to-revenue ratio guided at 15–18%.

• On track to deliver RM8 billion NPV synergy target by 2027, with RM1.0 billion gross synergy realized YTD.

• Plans to complete 75% of network upgrades by end of 2024, ahead of schedule.

• Targeting at least 50 fully branded retail stores by year-end.