PETALING JAYA: Digital Nasional Bhd’s (DNB) fifth generation of mobile networks (5G) minimum commitment fees may need to rise to a still-manageable RM270mil to RM290mil per access seeker to cover cash cost in the financial year 2026 (FY26).
This comes amid ongoing efforts to steer DNB towards financial sustainability following a challenging FY24, which saw the company report a substantial net loss of RM1.21bil (partly due to low revenue recognition) and net cash outflow of RM799mil (despite modest capital expenditure).
CIMB Research estimates DNB’s cash cost can be reduced to around RM1.1bil in FY26 (FY24: RM1.3bil), assuming reduction in staff cost, licence fee and interest charges (if the government provides soft loans).
“To cover this (while holding back capital expenditure), 5G minimum commitment fees may need to average RM270mil to RM290mil across the four access seekers, which is within our existing assumptions,” it said in a report yesterday.
DNB’s net debt was at RM4.43bil at end-FY24 (including lease liabilities and vendor financing), against a loss before interest, taxes, depreciation, and amortisation of RM484mil.
The 5G wholesale provider also maxed out an RM1.5bil revolving credit facility (expiring at end-November 2025) and is unable to raise new financing.
Thus, in mid-August 2025, CelcomDigi Bhd
, Maxis Bhd and YTL Power International Bhd provided non-interest-bearing shareholder advances (SHAs) of RM350mil (RM116.7mil each) to help DNB meet its working capital requirements.
The Finance Ministry (MoF) also contributed RM250mil of SHA, albeit funded through its existing shareholders loan (SHL).
It also noted MoF is considering whether to exercise a put option to sell its stake in DNB in November to December 2025.
If MoF exits, the research house estimates CelcomDigi, Maxis, and YTL Power International may each have to fork out about RM328mil to buy over its stake, and SHAs and SHL to DNB.
