Celcomdigi Berhad (KLSE:CDB)
Malaysia flag Malaysia · Delayed Price · Currency is MYR
3.030
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At close: May 8, 2026
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Earnings Call: Q4 2022

Feb 24, 2023

Idham Nawawi
CEO, CelcomDigi

As-salamu alaykum and Salam Sejahtera. It's hard to believe that it has been nearly three months since the completion of the Celcom and Digi merger, and the subsequent listing day one on the 1st of December 2022. The merger, deemed as the largest technology transaction in the history of Malaysia, has brought together more than 4,000 enthusiastic employees and 20 million subscribers under one united roof. As I look back on this period, I am proud of what we have accomplished as a company and extremely excited about the opportunities that lie ahead. The first three months of the operation has been eventful and promising. This truly reflects on the strength of the combined organizations. We are in a strong position to deliver on our vision of becoming the nation's top telco tech company within the next five years.

Now, I would like to hand over to Albern, our Deputy CEO, to take you through our results for the last quarter.

Albern Murty
Deputy CEO, CelcomDigi

Thank you, Datuk Idham. We entered 2023 with steady growth momentum from both Digi and Celcom's operations in the fourth quarter of 2022. We continue to prioritize on delivering quality Internet experience for our customers through best-in-value products and services, which now stands at 20.3 million, of which 11 million were from Digi and 9.3 million from Celcom. Our top-line performances for both entities sustained resilient performance for the year under review of Digi. Service revenue amounted to MYR 5.28 billion, driven by higher postpaid growth of 2% as postpaid subscribers grew for the 9th consecutive quarter. Digi has also seen strong trend from fiber as it rose fourfolds, while B2B went up 15% as compared to the previous year.

After including one-month contribution from Celcom in December 2022, service revenue for the enlarged entity rose to MYR 5.77 billion, supported by improvements across all segments by both companies. Celcom recorded healthy prepaid traction, coupled with solid contribution from the enterprise segment following the completion of the two acquisitions of two subsidiaries. Monthly ARPU for Digi and Celcom remained relatively stable at MYR 40 and MYR 46 respectively, driven by steady demand for all mobile product offerings. On net earnings, CelcomDigi delivered profit after tax of MYR 764 million in the year 2022 after accounting for non-recurring costs in relation to merger-related expenses, accounting adjustments, post-consolidation, and increased depreciation and amortization cost. Excluding one-off effects, our normalized profit after tax stood at MYR 1.2 billion, or a robust margin of 17.8%.

This reflected positive core revenue development, disciplined cost management, and low financing cost. The top-line growth supported by solid balance sheet has enabled us to deliver sustainable returns to our shareholders. A total dividend payout of MYR 364 million was distributed in the fourth quarter, bringing full-year dividend distribution to MYR 1.1 billion or 12.2 sen per share respectively. Back to you, Datuk Idham.

Idham Nawawi
CEO, CelcomDigi

Thank you, Albern. Looking ahead for 2023, we are taking strategic steps towards the future with an immediate focus to accelerate the integration activities and realizing net synergies of over MYR 8 billion. Through the combination of scale, competencies, and backed by global industry leaders, Axiata and Telenor as our shareholders, Celcom Digi is well-placed to serve the diverse needs of Malaysian consumers and businesses. In addition, we are firmly committed in propelling the nation's transition towards a digitally enabled society, spurring talent development, and bringing attractive values within 5G, automation, security, and IoT, amongst others. I am pleased to announce our 2023 guidance as follows. One, maintaining the growth momentum on service revenue, riding on the strong start the company has enjoyed so far. Two, expecting flat to low single-digit increase for EBITDA, underpinned by its financial discipline and operational excellence mindset.

Three, a CapEx-to-total revenue ratio of around 15%-18% as we invest smartly to fulfill our ambitions in line with innovation and digitalization agendas. Last but not least, I recognize that there is still much work to be done. We will continue to listen, learn, and evolve as we strive to create value for all stakeholders. We look forward to serving our customers and nation in new and innovative ways with our stronger combined network, wider retail touch points, and a range of products and services for all demographics. I would like to take this opportunity to appreciate a few important groups of people who have been central to our well-managed transitions to CelcomDigi. First, our employees who have come together strongly during this time of integration with determined focus to continue serving our customers well.

Our group of business partners and our ecosystem who have been very supportive and are working alongside us as we go through these new changes as a business together. Last but not least, the most important group of all, our customers, who continue to trust and motivate all of us at CelcomDigi to deliver the best in connectivity and digital solutions for all of you. Our commitment to you is to continue giving our best to advancing and inspiring our societies. It is an exciting journey ahead of us. I will sign off for now, and I'll see you again next quarter. Thank you.

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