KUALA LUMPUR: Celcom Axiata Bhd continues its growth momentum into the first quarter (Q1) of financial year ending December 31, 2021 (FY21) with positive performance across core revenue segments, and this is evidenced by 317,000 quarter-on-quarter (qoq) increase in subscriber base.
For Q1 ended March 31, 2021, Celcom recorded an improved year-on-year (yoy) profitability combined with revenue growth of RM84 million, up by 5.4 per cent, while pre-tax earnings improved 27.6 per cent to RM142 million.
Celcom said excluding one-off impact from accelerated depreciation of 3G assets, net profit rose 13.2 per cent on the back of improved performance together with lower net finance costs.
Chief executive officer Idham Nawawi said Celcom got off to an encouraging start in 2021 with multiple initiatives across core revenue segments to mitigate impacts from a challenging operating and business environment.
"The pandemic in 2020 made life difficult for all Malaysians, and we have put great efforts to adapt to the new normal, making it easier for customers to buy and use our services through digitisation," he told reporters at Celcom's virtual Q1 financial performance briefing today.
Idham said as of Q1, the company has invested RM166 million in capital expenditure, with a bulk of it went to the modernisation of its network.
He said Celcom's accelerated network investments also focuses on preparing the network for cessation of 3G services by end 2021.
To ensure Malaysians are digitally enabled with 4G network services on the nation's widest network, Celcom has launched attractive device bundling and product offers to make it easier for customers to switch from 3G devices to 4G smartphones through multiple channels.
"We will continue to work to raise the quality of our 4G network coverage and experience, as well as ensure our customers have a seamless transition from 3G to 4G. We will also work on expanding the reach of our high-speed broadband convergence services to sustain the growth momentum forward.
"Celcom will also continue to work closely with the government and the industry players to achieve the nation's digital aspirations and create a 'win-win-win' situation that will benefit the rakyat, the government and the digital ecosystem.
"We look forward to maintain our industry leadership position as Malaysia's widest network provider," he said.
He said in 2021, the company has earmarked RM1 billion capex, with 70 per cent of it will go to network modernisation.