KUALA LUMPUR (May 13): CelcomDigi Bhd (KL:CDB) said on Wednesday its net profit rose nearly 9% in the first three months of 2026 from lower operating expenses and device costs.

Net profit for the first quarter ended March 31, 2026 (1QFY2026) was RM418 million versus RM384 million over the same period last year, Malaysia's largest mobile network operator by subscribers said in a statement. Revenue was stable year-on-year at RM3.21 billion.

CelcomDigi is keeping its target for “low single-digit growth” in service revenue and earnings before interest and tax. The guidance for capital expenditure is for between 12% and 13% of total revenue.

The company declared an interim dividend of 3.4 sen per share, payable June 30.

“As we enter the next phase of growth, we are sharpening our portfolio through stronger mobile and home and fibre propositions, as well as more personalised, segment-based services,” CelcomDigi chief executive officer Albern Murty said in a statement accompanying the results.

CelcomDigi will focus on operational efficiency to help sustain growth and margin after closing the quarter with 20.4 million subscribers.

Service revenue, which excludes sales of devices, rose 1.6% year-on-year on the back of continued growth in postpaid, home and fibre, and enterprise segments. Earnings before interest and tax (Ebit) were up 4.7% compared with the same quarter last year.

Capital expenditure declined 20.9% to RM117 million.

During the quarter, postpaid revenue grew 3.1% year-on-year with subscriber base expanding to 6.1 million accounts from net additions and customer retention management. Refreshed portfolio drove value mix to higher-value plans and lifted its average revenue per user to RM113.

Prepaid services, however, saw a 3% revenue decline from fewer revenue days while average revenue per user stood at RM30 from higher-value customers and personalised offerings.

At its home and fibre segment, revenue jumped 56% as the company added some 92,000 subscribers. CelcomDigi ended the quarter with 297,000 subscribers, partly driven by a reclassification adjustment from postpaid.

Revenue from enterprise mobile grew by 3.7% while revenue from enterprise solutions jumped by nearly 30%.

“CelcomDigi is accelerating digital and AI-driven operations while embedding automation across the business, enabling a more agile, data-driven operating model that supports ongoing Ebit growth, margin expansion and innovation,” the company said.

CelcomDigi shares paused for midday trading break down two sen or 0.7% at RM2.99 ahead of the results announcement, giving it a market capitalisation of RM35.08 billion.