Axiata Group Berhad announced its financial results last Friday, revealing that Celcom Axiata now has 9.62 million mobile subscribers (vs 9.6 million in 1Q18). Celcom Axiata is a subsidiary of the Axiata Group.
The Telco added 27k new mobile subscribers between April, May and June 2018.
There are now 2.84 million postpaid subscribers (vs 2.83 million in 1Q18). It added 10k new postpaid subscribers in 2Q18. As for its prepaid subscriber base, there now now 6.79 million prepaid subscribers (vs 6.77 million in 1Q18). It added 17k new prepaid subscribers in the latest quarter.
Postpaid ARPU stood at RM87, the same as 1Q18 while Prepaid ARPU was at RM35 (vs RM34 in 1Q18).
Celcom said its mobile subscribers consumed an average 11.4GB a month in 2Q18 (vs 9.5GB in 1Q18). About 76% of Celcom mobile subscribers are smartphone users (vs 75% in 1Q18).
It’s 4G LTE population coverage is now at 89% (vs 88% in 1Q18) while 4G LTE-A coverage stands at 76% (unchanged since 1Q18) nationwide.
Celcom Financial Highlights Q2 2018, according to Axiata:
- On QoQ basis, service revenue and total revenue growth of 3.0% and 2.8% respectively, which are ahead of industry largely driven by solid prepaid growth momentum.
- QoQ EBITDA growth of 6.8% largely due to lower direct expenses.
- YTD18 revenue, EBITDA and PATAMI growth was 3.6%, -1.7% and -37.8%, respectively. EBITDA impacted by change in revenue mix and higher staff cost; PATAMI decline was impacted by higher D&A charges in 1H18, and gain on disposal of 11st in 2Q17.
- Second consecutive quarter of positive net addition, pushed by improved sales distribution and simplified product offerings.
- Celcom continues to focus on high value customers (HVC) as 2Q18 ARPUs improved YoY for both postpaid (+RM5 to RM87) and prepaid (+RM4 to RM35).
- In 2Q18, 4G and 4G LTE-A population coverage are at 89% and 76%, respectively.
- Ongoing cost takeout and rationalisation of spends.
Tan Sri Jamaludin Ibrahim, President & Group Chief Executive Officer of Axiata said, “This has been an eventful quarter in many ways!”
“Looking at actual operational performance, I am pleased with how our OpCos stayed ahead of the tough competition to make steady gains in their respective markets. All OpCos showed particularly strong underlying growth in revenue and EBITDA with Celcom and XL demonstrating healthier operations. Celcom was the only operator in Malaysia to record growth in service revenue and total revenue for the quarter, indicating clear and commendable signs its turnaround is well on track. Similarly, XL also performed best in the market in comparison to its competitors, as the industry faces adjustments with the recent massive SIM registration exercise. Our PATAMI, however, was affected by higher depreciation and amortisation charges due to our aggressive Capex in data investment in the previous years. I am also pleased to note that our new core digital businesses are starting to contribute to the Group’s top line.”
“Our Group-wide cost optimisation programme successfully delivered RM800 million in savings giving us a comfortable runway to achieve our full year target of RM1.4 billion. EBITDA expanding more than revenue, reflects this. We are committed to stay on this path to ensure we hit the RM5 billion cost reduction target over the next five years,” Jamaludin continued.
In light of Axiata’s half year performance, the Board of Directors declared an interim dividend of 5 sen per share, representing 86% of its half-year reported Normalised PATAMI of RM526.2 million being returned to shareholders for the financial year ending 31 December 2018.
Celcom recently announced Mohamad Idham Nawawi as its new CEO, effective 1 September 2018, taking over from Michael Kuehner.