CelcomDigi delivers steady Q1 FY2026 performance

• Delivers over US$9.4 mil in savings while advancing digital transformation initiatives
• Network modernisation surpasses 90% completion as telco accelerates AI-driven operations and automation

CelcomDigi has announced its first quarter results for the Financial Year 2026 (FY2026), reporting improved year-on-year (Y-Y) service revenue and stronger profitability driven by disciplined execution and operational efficiencies (OE).

Q1 FY2026 total revenue remained stable at US$755 million (RM3,208 million) (-0.03% Y-Y), while service revenue grew 1.6% Y-Y to US$635 million (RM2,697 million), supported by continued growth momentum in Postpaid, Home & Fibre, and Enterprise solutions. Earnings before interest and tax (EBIT) rose 4.7% Y-Y to US$172 million (RM729 million), reflecting stronger topline contributions and lower operating expenses (OPEX), while profit after tax (PAT) improved 8.8% Y-Y to US$99 million (RM422 million), underpinned by effective cost discipline and higher EBIT.

[RM1 = US$0.25]

The company said it has established a more optimised cost base through procurement and contract optimisation, as well as sustained improvements in site rental and network costs, as it transitions from integration-driven synergies to structurally recurring operational efficiencies. CelcomDigi delivered over RM40 million in savings during the quarter, supported by a ready pipeline of OE initiatives that provides visibility on continued cost discipline and long-term value creation.

In line with its aspiration to become the country’s most efficient telco operator, CelcomDigi is accelerating digital and AI-driven operations while embedding automation across the business to support a more agile and data-driven operating model focused on sustaining EBIT growth, margin expansion and innovation.

The company closed the quarter with 20.4 million subscribers and declared a first interim dividend of 3.4 sen per share, in line with its sustainable dividend commitment to shareholders.

CelcomDigi CEO Albern Murty said the company’s Q1 performance reflects disciplined execution and the strong structural foundations built over the past three years.

“As we enter the next phase of growth, we are sharpening our portfolio to drive higher-quality, sustainable value for the consumer segment through stronger mobile and home & fibre propositions, as well as more personalised, segment-based services that enhance customer experience,” he said.

“We continue to focus on a disciplined, data-driven approach to operational efficiency that will sustain growth and margin,” he added.

Integration and transformation in final stretch, with key milestones delivered

CelcomDigi’s three-year integration and transformation programme is in its final stretch, with major milestones delivered across the business and synergy targets remaining on track. Network modernisation and integration have surpassed 90% completion, contributing to improved service quality and customer experience in upgraded areas.

Major IT consolidation efforts included the rollout of the Distribution Management System (DMS) and Dealer Wallet in Q1, now supporting over 22,000 outlets nationwide. The initiatives have streamlined dealer operations, improved efficiencies and enabled faster go-to-market execution across CelcomDigi’s retail and distribution ecosystem.

On the retail front, over 60 CelcomDigi stores have been modernised, while the nationwide refresh of more than 300 exclusive partner stores is now 80% complete, with final completion targeted by the third quarter this year.

As a flow-through of integration-related cost efficiencies, the company remains on track to deliver steady-state annualised cost savings of approximately RM700 million to RM800 million post-2027.

Reinforcing its position as Malaysia’s widest, fastest and most secure network, CelcomDigi recently launched its first 5G in-building connectivity (IBC) deployment at Pavilion Kuala Lumpur, with plans to extend deployments to more strategic locations nationwide to support growing demand for seamless, high-quality 5G experiences.

The company said it continues to drive 5G adoption through its best-value 5G plans, widest range of 5G devices, strongest global roaming partnerships and the nation’s largest base of 5G users.

Financial and Operational Highlights

• Postpaid: Stable performance through quality base and value management
  • Postpaid revenue grew 3.1% Y-Y to RM1,102 million. Subscribers increased by 235K (+4.0% Y-Y) to 6.1 million, driven by quality net additions and disciplined customer retention management. The refreshed portfolio drove value mix towards higher-value plans and lifted ARPA to RM113 (+7.7% Y-Y). Q-Q performance was lower (-1.3%), mainly due to seasonal roaming, a shorter number of days, and a reclassification adjustment to Fibre plans.
• Prepaid: Stable performance with focus on segmented propositions and base management
  • Prepaid revenue was at RM1,024 million (-3.0% Q-Q, -3.0% Y-Y), primarily driven by two fewer revenue days. On a normalised daily basis, performance remained largely stable, supported by a healthier subscriber mix despite a subscriber reduction of 987K (-2.4% Q-Q, -7.6% Y-Y) to 11.99 million. ARPU improved to RM30 from consistent engagement with higher-value customers, coupled with personalised offerings.       
• Home & Fibre: Steady growth with Convergence improving ARPU and value mix
  • Home & Fibre revenue grew to RM89 million (+21.9% Q-Q, +56.1% Y-Y), with subscribers rising by 12K Q-Q and 92K Y-Y to close at 297K. This was driven by sustained demand for CelcomDigi One™ plans and a reclassification adjustment from Postpaid. ARPU grew to RM102 (+13.3% Q-Q, +6.3% Y-Y), supported by a refreshed portfolio, stronger value mix and more sustainable margins.
• Enterprise: Healthy performance underpinned by improving Enterprise Core Mobile fundamentals and continued growth in Enterprise Solutions
  • Enterprise Mobile revenue grew 3.7% Y-Y, supported by improving business fundamentals despite softer Bulk SMS contributions. Q-Q performance declined 2.9%, mainly due to unforeseen market developments and seasonal market activity driving lower commitment value and roaming usage.
  • Enterprise Solutions revenue improved 29.8% Y-Y, driven by continued growth momentum. Q-Q performance was lower (-44.4%) mainly due to the timing of contractual billings in Q4 FY2025.