NEWS RELEASE
FOR IMMEDIATE RELEASE
CELCOM SURPASSES RM2BIL REVENUE MARK FOR THE FIRST TIME IN
SECOND QUARTER OF 2013
Leads industry with quarterly EBITDA crossing RM900 million for the first time and PATAMI of
RM577 million representing q-o-q growth of 3.2% and 5.1% respectively
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Celcom’s quarterly revenue crosses RM2 billion mark for the first time, totalling RM4 billion
for 1H’13, registering 29th consecutive quarter of revenue growth
Sustained mobile broadband leadership with 1.1 million subscribers contributing RM265
million in revenue representing double-digit y-o-y growth of 18.6% ; mobile internet
revenue grew by 44% in 1H’13
Highest subscriber share for the first time since start of transformation programme with
subscribers almost closed to14 mil including MVNOs ; 3.6 million smartphones on
Celcom’s network representing a 16%q-o-q growth
Celcom 4G LTE rollouts on track in Klang Valley, Johor and Penang with expansion to
Ipoh, Kuantan, Kota Kinabalu, Kuala Terengganu, Kuching, Kota Bharu, Langkawi and
Malacca
Smarter-spend initiatives drive higher EBITDA margins while ROIC was also an all-time
record.
Key strategic partnerships established for bandwidth sharing, network infrastructure,
digital content, and entertainment services
Further investments in nationwide network, LTE rollouts, targeted marketing initiatives and
digital services to propel growth for rest of 2013
KUALA LUMPUR, 11 September 2013 – Celcom Axiata Berhad, the first and foremost mobile
telecommunications provider in the country, saw revenue for this year’s second quarter
surpassing the RM2 billion mark on top of industry-leading financial indicators.
Celcom’s quarterly revenue for April to June 2013 stood at RM2.01 billion for the very first time in
the company’s history, bringing the total to RM3.99 billion for the year to date (YTD) and
representing a year-on-year (y-o-y) improvement of 4.3%.
The telco continued its industry-leading run in profits with quarterly normalised EBITDA crossing
the RM900 million mark for the first time (RM903m), bringing the total for the first half of 2013 to
RM1.78 billion with a commendable margin of 44.5%.
This was further complemented by a solid quarterly PATAMI of RM577 million, a 5.1%
improvement from last quarter’s figure of RM549 million and bringing operational PATAMI for the
first half of 2013 to RM1.13 billion with a margin of 28.2%.
Both margins were reinforced by smarter-spend initiatives, better asset management,
productivity improvement programmes, as
well as segmented, cost-efficient marketing Performance Highlights
initiatives. Moving forward, Celcom will look
(RM mil)
(RM mil)
into optimising cost in the best ways possible. Year-to-date (YTD)
Return on invested capital (ROIC) also stood
1H’12
1H’13
at an all-time high for the quarter.
Revenue
3,827
3,993 (+4.3%)
EBITDA
1,707
1,778 (+4.2%)
Including mobile virtual network operators PATAMI*
1,109
1,127 (1.6%)
(MVNOs) under its network, Celcom had the Quarter-on-quarter (q-o-q)
highest subscriber share in the industry with
Q1’13
Q2’13
total subscribers at almost 14 million for the Revenue
1,979
2,014 (+1.8%)
first time since the start of its transformation EBITDA
875
903 (+3.2%)
programme
while
sustaining
mobile PATAMI*
549
577 (+5.1%)
broadband leadership with 1.1 million * operational PATAMI normalised for impact of accelerated depreciation
subscribers contributing RM521 million in
revenue representing double-digit y-o-y growth of 18.6%.
While SMS revenue continued its gradual decline in line with industry trends, Celcom’s other
non-voice services including broadband and mobile internet, digital services, and M2M
(machine-to-machine) services contributed almost a quarter of YTD revenue at 24.2% from
22.8% a year ago, underscoring the increased focus on data as a key driver of growth. Data
revenue which consisted of broadband and mobile internet stood at RM647 million for the first
half, a significant increase of 16.1% y-o-y pushed by the steadfast growth in mobile internet
revenue that grew 44% y-o-y.
Smartphones on Celcom’s network climbed to 3.57 million, representing close to 28% of
Celcom’s mobile customers and a 16% q-o-q growth from 3.08 million previously, aided by
aggressive sales drives for new device launches and bundles which pushed device sales to
RM128 million YTD (an increase of 117.4% y-o-y). Similarly, the number of tablets on the network
rose to 271,000 with a 23.1% q-o-q growth.
Celcom’s second quarter financial results media briefing for 2013 was hosted by Dato’ Sri
Shazalli Ramly, Chief Executive Officer; Chari TVT, Chief Financial Officer, and Jennifer Wong
Chui Fen, Head of Business Support and Revenue Assurance of Celcom Axiata Berhad.
At the media briefing, Dato’ Sri Shazalli said, “Celcom’s focus on delivering higher value to
segmented customers, enhancing network quality, and diversifying product and service
offerings have proven beneficial yet again in our 29th quarter of revenue growth. Solid
productivity improvement initiatives, more efficient marketing tools, and asset sweating have
resulted in a highly commendable quarterly revenue and margin in line with targets set by
Axiata Group Berhad.”
The establishment of key strategic partnerships this year including for bandwidth sharing,
network infrastructure, digital content, and entertainment services will provide even more value
to our customers in Celcom’s Fastest Territory. Apart from our aggressive roll out of 4G LTE
through industry-leading back-end, device and product support, Celcom will continue its strong
focus on digital services as evidenced through our recent launches of ESCAPE, Bachabooku,
Buzzaar, and The Crescent,” Dato’ Sri Shazalli added.
Celcom has received both local and regional recognition from global consultancy Frost &
Sullivan in 2013. In May, Celcom chalked up its fifth annual recognition as Mobile Service
Provider of the Year and its second win for the Broadband Service Provider of the Year award at
the 2013 Frost & Sullivan Malaysia Excellence Awards. It was also the first time that Celcom was
recognised as Telecommunications Wholesale Service Provider of the Year, showcasing the
telco’s substantial investments and partnership with local and regional communication startups.
Last month, the telco pushed its streak of industry accolades to the regional level when the
company was crowned Wireless Data Services Provider of the Year at the 2013 Frost & Sullivan
Asia Pacific ICT Awards.
Moving Forwards
Celcom will continue its focus on digital services underlined by a new venture into mobile
personal entertainment through its new subsidiary ESCAPE Axiata Berhad, accompanied by the
introduction of its three new e-commerce portals Bachabooku, Buzzaar, and The Crescent last
month as well as a strategic partnership with Huawei, a leading global ICT solutions provider, to
provide enhanced mobile digital content for its customers. These recent launches
accompanied thematic campaigns centred on the month of Ramadan and Hari Raya Aidilfitri
by The Cube as well as new app and music offerings such as Mobiroo and Musicube Mini.
Celcom will also further enhance its brand and voice usage by the introduction of Xpax24, a
new prepaid brand for youth aged 24 years and above that offers the best rate for voice, video
calls, and SMS that allows customers to take charge of their mobile spending.
The telco is also moving beyond customer trials for Celcom 4G LTE by introducing more devices
and commercial plans from October onwards. Currently, eligible customers can enjoy Celcom
4G LTE through existing Celcom First broadband and mobile internet plans.
Current Celcom 4G LTE deployment plans are on track and aims to reach 30% of the population
by the end of Q2 2014 covering 33 strategic districts nationwide including Klang Valley, Johor
Bahru, and Penang, as well as Kota Bharu, Kuala Terengganu, Langkawi, Ipoh, Kuantan,
Malacca, Kota Kinabalu, and Kuching. Celcom is also spending RM420 million of its CAPEX
budget to enhance its nationwide network for LTE deployment.
Celcom will continue its investments in its mobile network, resulting in fast data connections
through an expanding LTE network complemented by its current HSPA+ (3G) speeds of up to
42Mbps in urban centres. The telco has completed its nationwide network upgrade exercise
and is currently focusing on key Klang Valley upgrades due for completion at the end of the
year that will seamlessly integrate 2G, 3G, and LTE back-end infrastructure for optimal customer
experience and efficient asset utilisation.
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