Higher costs weigh on CelcomDigi’s performance


PETALING JAYA: CelcomDigi Bhd has posted a lower net profit of RM341.23mil during the third quarter ended Sept 30, 2025 (3Q25), compared to RM436.98mil in the same period last year.

The mobile network operator attributed the drop to an elevated cost base, noting that total costs grew by 10.4% or RM168mil mainly due to higher traffic-related costs and a higher provision for expected credit loss.

Revenue was little changed at RM3.12bil, down by RM1.64mil from a year earlier, supported by continued growth in postpaid and home and fibre service revenue, it said in a filing with Bursa Malaysia yesterday.

For the first nine months of 2025, the company posted a decline in net profit to RM1.16bil from RM1.22bil in last year’s corresponding period, while revenue rose to RM9.51bil from RM9.4bil previously.

In a press statement, CelcomDigi said service revenue increased 1.5% year-on-year (y-o-y) to RM2.73bil, driven by good performance across its core segments of postpaid, prepaid, home and fibre, and enterprise solutions.

“(This reflected) the company’s effective market execution and continued focus on delivering value to customers,” it said.

CelcomDigi said its disciplined cost management helped mitigate the impact of higher provision for doubtful debts, cost of goods sold, depreciation and amortisation, as well as a higher effective tax rate during the quarter under review.

“Earnings before interest and tax moderated 16% y-o-y to RM648mil, while profit after tax eased 20.5% y-o-y to RM350mil, reflecting the company’s continued focus on long-term financial resilience amid ongoing investments,” it said.

CelcomDigi closed the quarter with a total of 20.5 million subscribers.

The company disclosed that its network integration and modernisation has reached over 90% completion as of end-September 2025, providing customers with enhanced service quality on the newly upgraded CelcomDigi intelligent network.

Average monthly data usage has increased to 40GB per user, reflecting “strong demand for high-speed, reliable connectivity supported by Malaysia’s widest, fastest and secure 4G/5G connectivity.”

CelcomDigi acting chief executive officer Albern Murty said the 3Q25 performance demonstrates the strength of the company’s execution and the impact of disciplined cost management initiatives.

He explained that near-term profits moderated due to its strategic investments, designed to strengthen future earnings capacity and support long-term growth.

“With a solid foundation in place, we are confident that we will begin financial year 2026 on a strong footing, delivering further growth, innovation, and value for our customers and the nation,” he said.

CelcomDigi declared a third interim dividend of 3.6 sen per share (the same as in 3Q24), which will be paid on Dec 23, 2025. — Bernama

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