Celcom allocates up to RM1.3bil capex in 2018March 8, 2018 @ 6:30PM
By Farah Adilla
KUALA LUMPUR: Mobile telecommunications service provider Celcom Axiata Bhd is allocating between RM1.2 billion to RM1.3 billion in capital expenditure (capex) for the financial year 2018, whereby a bulk of it will be used for network enhancement and digitisation.
Noting on the company's RM1.5 billion in capex allocation in 2017, chief executive officer Michael Kuehner said for 2018, Celcom Axiata will continue to be focused on network enhancement to deliver better customer experience.
"We will continue to focus on our network enhancement effort to deliver better customer experience, which tremendously improved in 2017," he told reporters at Celcom’s fourth quarter financial year 2017 performance briefing through a video conference from Nusajaya, Johor Bahru today.
In 2017, Michael said Celcom’s network enhancement was a major contributing factor to better performance that the company recorded, with 4G and LTE-A coverage now cover 87 per cent and 74 per cent population coverage respective nationwide.
For the full financial year 2017, Celcom’s net profit increased 1.4 per cent to RM1.25 billion from RM1.23 billion recorded in the same period a year ago.
Kuehner said the improved net profit was due to strong focus on customer experience and improvements in major revenue generating turnaround elements and key functional areas such as sales and distribution, network and products.
"The improved result signifies the steadfast progress for Celcom’s turnaround and we are gradually regaining our position in the market,” he said.
Celcom’s revenue for the 12-month period increased 0.6 per cent to RM6.66 billion from RM6.62 billion recorded in the same period in 2016.
Financial year 2017 marked the company’s first uplift in both net profit and revenue after three consecutive years of decline.
For the fourth quarter, net profit was up 19.5 per cent to RM336 million from RM281 million, while revenue increased eight per cent to RM1.78 billion from RM1.65 billion.