Celcomdigi Berhad (KLSE:CDB)
Malaysia flag Malaysia · Delayed Price · Currency is MYR
3.030
-0.010 (-0.33%)
At close: May 8, 2026
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Earnings Call: Q1 2025

May 22, 2025

Speaker 1

Hi everyone, we meet again, how time flies. Today I would like to share with you some of the key highlights and my own reflection on our performance for Q1 2025, as well as some of the progress that we are making on our merger integration. I'm very pleased to actually share with you that we have quite an encouraging first quarter of 2025. We're seeing growth in both our total revenue as well as our profit after tax. What makes it more encouraging is that we are growing in the areas that are strategic to us. We're growing very well in postpaid, we're growing very well in convergence, and we're also growing very well in the enterprise solution.

The market, however, continues to face challenges in the prepaid space, and we are doing a lot of initiatives to make sure that the impact to CelcomDigi is not as much as what the market is facing. As an organization, we also put a lot of focus on operational excellence. Cost management is our top agenda, especially around managing our cost of goods. We have been successfully reducing our OpEx since the beginning of the merger. We are tracking well towards our target of $700 million-$800 million run rate savings upon the full completion of the integration projects post- 2027. On the integration and transformation, we are also tracking very well.

On the network side, we are now tracking on the last 20% of network modernization, and we hope by the year end that most, if not all, of our subscribers will be able to have an elevated experience with a brand new, most modern network in the country. We are now putting a lot of focus on the IT integration. This is one of the most complex parts of the merger. As I have reported earlier, we have more than 50 different systems to be integrated. Last year, we successfully completed 20 of them. We're working on a new set now in 2025, and hopefully by the end of the year, some of the major transformations that we're doing on our core systems will also be completed. Our retail integration is also going very well.

We have modernized or transformed more than 50 of our own retail outlets, and we are now focusing on transforming the next phase of our retail franchise. By the end of this exercise, together with our retail partners, making us the largest branded retail chain for digital products distribution in the country. We are looking forward to that. Now, barring any circumstances, we are tracking well. That was our guidance for the year. We will continue to focus on the areas I mentioned previously. First is on the long-term profitable growth as a market leader. Second is to bring and deliver more value to our 20 million subscribers through our digital products as well as value-added services. Three, focus on operational excellence, and our aspiration is to become the most efficient telco in the region.

Last but not least is about investing in the future, especially in the space of innovation and artificial intelligence. I would like to take this opportunity, of course, to thank our customers, our regulatory government, our partners, and investors for your continued support and trust in CelcomDigi. With that, thank you again, everyone, and I will see you again next quarter.

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