Celcom Axiata: 12% patami growth in Q3

KUALA LUMPUR: Celcom Axiata Bhd, which saw a 12% jump in profit after tax, amortisation and minority interest (patami) for the third quarter ended Sept 30, 2017 to RM309 million from RM276 million a year ago on the back of accelerated efficiency in cost optimisation, has regained number two spot in terms of service revenue.

The telco saw its total revenue inch higher by 1.5% in the quarter under review to RM1.65 billion from RM1.63 billion last year, propelled by stronger service revenue.

Service revenue, which was the main engine for earnings, grew to RM1.52 billion from RM1.50 billion in the same quarter last year, driven mainly by stronger overall data performance.

“In Q3 last year we were the number three telco, we were overtaken by a certain yellow telco. I am glad to report that we have actually regained our number two position,” Celcom deputy CEO Azwan Khan Osman Khan ( pix) said at a media briefing on the telco’s third-quarter results.

In the third quarter ended Sept 30, 2016, Digi.com Bhd recorded RM1.55 billion in service revenue, surpassing Celcom, which posted RM1.50 billion in the same quarter.

Digi had service revenue of RM1.48 billion in the third quarter ended Sept 30.

Maxis, which has pole position, registered RM2.155 billion in service revenue for the third quarter ended Sept 30, 2017.

Despite a shrinking prepaid market, Celcom Axiata managed to see a 3.7% revenue growth in the segment from the preceding quarter ended June 30, 2017 driven partly by prepaid data add-on although the postpaid segment saw a marginal decline of 1% in revenue.

Average revenue per user (ARPU) for both the prepaid and postpaid segments grew by RM2 to RM33 and RM84 respectively.

The number of Celcom’s prepaid subscribers for the quarter under review however fell to 6.80 million from 7.01 million in the preceding quarter. The telco had embarked on a 230,000 “inactive subscribers purge” in the quarter.

Celcom Axiata CFO Jennifer Wong said the group, which has thus far deployed RM670 million of its allotted capital expenditure of RM1.5 billion, may end up spending less (RM1.4 billion) than the initial fullyear allocation, adding that funds are being deployed for network enhancement and business digitising efforts.

“When we spend a lot more in terms of capital investment it will actually translate into depreciation in the long run … but we will try to improve our patami as we go on … it is quite challenging. I think we will do better, we are hoping to do similar to Q3 if not better,” Wong commented.

Meanwhile, she said Celcom will be able to manage, with internally generated funds, the financial impact that could arise from its participation in the Malaysian Communications and Multimedia Commission’s call for bids for a 700Mhz spectrum.