KUALA LUMPUR (Feb 24): Digi.com Bhd (CelcomDigi) net profit stood at RM42.82 million or 0.47 sen per share in the fourth quarter ended Dec 31,2022 (4QFY2022) versus RM304.55 million or 3.92 sen per share a year earlier, marking the first time the company combines its financial reporting since completion of the merger. 

Excluding the non-recurring items related to the merger, the quarterly earnings would have been higher at RM368 million, with a margin of 16.9%, said CelcomDigi in a statement. 

Notably, CelcomDigi said the figures of the quarterly report include the results and metrics from Celcom from Dec 1, 2022 onwards. 

Therefore, the quarter-on-quarter (q-o-q), year-on-year (y-o-y) and full year (FY) comparatives are not on a like-for-like basis.  

In addition, 4QFY2022 results include merger-related costs and accounting adjustments to harmonise the accounting policies and estimates within CelcomDigi (the group). The report shows both reported results inclusive of all adjustments, as well as results excluding non-recurring items, where applicable. 

It said 4QFY2022 Ebitda excluding non-recurring items for CelcomDigi was RM971 million, with the margin at 44.5%, on the back of positive top line development, prudent spending and disciplined credit management.  

In a filing with Bursa Malaysia on Friday (Feb 24), the group said revenue was RM2.18 billion, up from RM1.58 billion. 

For the full year results ended Dec 31,2022 (FY2022), net profit fell to RM763.5 million from RM1.16 billion a year earlier, while revenue was slightly higher at RM6.77 billion from RM6.34 billion.  

The group said earnings were impacted by additional depreciation and finance costs resulting from the harmonisation of accounting policies and estimates and the merger respectively, as well as Cukai Makmur. It added that net profit excluding the harmonisation adjustments, merger-related one-offs, and Cukai Makmur for FY2022 would have been RM1.2 billion, at a margin of 17.8%. 

In a separate statement to Friday, the company registered across-the-board improvements in its postpaid, prepaid, fibre, and enterprise segments, driven by its high-speed internet products bundling, catering to the ever-growing internet demand from its customers. 

Monthly average data per user for Digi’s customers reached 24.5GB, up 18.4% y-o-y, while Celcom’s customers registered 28.0GB usage, up 15.0% y-o-y. 

To support this demand, it said CelcomDigi prioritised part of its RM904 million capex in FY2022 (including a one-month contribution from Celcom) to further improve its network quality and coverage. Both Digi’s and Celcom’s 4G LTE network coverage expanded to over 96%, while LTE-A reached over 90% of populated areas nationwide. 

CelcomDigi’s chief executive officer Datuk Idham Nawawi said, “Looking ahead, we expect continued growth in data usage, primarily in 4G services, supported by initial adoption of 5G technology and (the) increasing use of digital services and platforms.” 

“Given the challenging macroeconomic outlook, we will draw on our combined strength to position ourselves for the future, with an immediate focus on strengthening core and new revenue growth areas, while delivering quality internet experience to customers,” he added. 

In the quarter under review, CelcomDigi sustained its underlying service revenue 1 growth momentum, recording an increase of 37.2% y-o-y and 37.5% q-o-q to RM1,813 million, driven by strong contribution from its postpaid, enterprise and fibre businesses. 

Ebitda excluding non-recurring items for CelcomDigi was RM971 million, with the margin at 44.5%, on the back of positive top line development, prudent spending, and disciplined credit management. 

CelcomDigi said the operational highlights for 4QFY2022 include:  

• Total subscriber base expanded to 20.3 million, comprising 66.8% prepaid subscribers; 32.9% postpaid subscribers; and a small, fast growing fibre base at 0.3%;
• Combining both operations’ postpaid subscribers, there was a net addition of 150K (subscribers) y-o-y to a total of 6.67 million, whereas prepaid’s subscriber base grew 162,000 y-o-y to 13.54 million Blended ARPU for Digi, and Celcom remained stable at RM40 and RM46 respectively, driven by steady demand for all mobile product offerings.

The company will be seeking shareholders’ approval for the proposal to change its name to CelcomDigi at its extraordinary general meeting (EGM) later on Friday. If approved, a formal filing on the outcome of the EGM will be made to Bursa Malaysia on Friday evening, and the necessary registration for the namechange will be concluded in due course.