Earnings Call: Q2 2025

Aug 18, 2025

Hi, everyone. Thank you for joining us again. Great to be back for our quarter two 2025 update. I'm pleased to report that we had a positive quarter two 2025, continuing the momentum from the last quarter, and also taking advantage from the expected synergies from the merger. We recorded strong earnings, mainly from the growth of our core segments and the high-value subscribers that we have, supported by very disciplined cost management and prudent capital spending. Our quarter two revenue remains stable despite what we're facing in the market, and with our service revenue growing by 1.4%, which is driven by the postpaid and also the home and fiber segments. Our year-to-date revenue grew 2.3%, which is again supported by the postpaid and also the home and fiber, with our EBIT increased by 12.3% due to strong cost control and also the lower depreciation. Our effort in the market for strategic investment and our cost disciplines are driving a more profitable and also sustainable growth despite the external challenges, indicating that the strategy that we took, the priorities that we have shared with our investors are bringing the returns that we're looking for. On the integration and the transformation programs, we are also making very good progress. Network consolidation more than 84% complete. IT integration is tracking well. Most of the major applications is being tested. Some of the programs, the modules has been delivered, and we especially on the core systems like our billing system, which is currently on track for Q4 2026. IT modernization and integration program is one of the most complex program that we are undertaking. We are managing this quite well, both internally as well as with our partners. We also, at the same time, making a lot of effort in terms of improving how we interact with our customers. Our modernization and integration of our retail distribution is progressing quite well and nearing completion. Most of our stores are already modernized, and we are currently rapidly deploying with our partners, with our franchise partners, that is, our new CD Store Express. We have also introduced 2 new flagship stores, which introduce new concept for retail together with our partners, or in this case, our initial partners of Samsung and also Disney. All these efforts didn't go unrecognized. We want to thank Retail Asia for recognizing these efforts, making ourself as the Telco Retailer of the Year and also the Innovation Team of the Year. Now, this effort around customers is not just at the retail store, but across the board. The whole company is now rallying about serving our 20 million customers well. We also continue to introduce the new technology and also the new methods and new programs on how the customers can reach us, reach the company, and speak to us, and also how we can support our customers better. New channels, including the digital channels such as the WhatsApp channel, new applications using GenAI, and also agentic AI is in the testing period. We are also very encouraged by the response our customers has given us with these new initiatives. In summary, barring any unforeseen circumstances, we are now on track to deliver our 2025 full year guidance. We are also tracking well towards achieving the synergy target of reaching the steady state savings of MYR 700 million-MYR 800 million by 2027. We remain focused on our long-term profitable growth and taking advantage of our position as a market leader. We want to bring more value to our 20 million customers through new digital products and also new value-added services. Operational excellence transformation is ongoing across the board, focusing on cost and also operating model optimization. Our target is to be the most efficient telco in the region. At the same time, we will continue to invest in the future. We are excited about these new innovations that we are undertaking, about 5G innovations, and also new innovations around AI. I want to thank again all our 20 million-plus customers, the government and the regulators that continue to support us and also the industry, our relentless ecosystem and partners that work day and night to make sure that we are together successful in the market, and also all of our investors that continue to trust and believe in the vision of CelcomDigi. With that, I want to thank you and hope to see you again next time.