Celcom Q4 2016 business report - improved EBITDA & PATAMI, mobile service revenue growth to RM1.52 billion


The new Celcom managament team

Today, Celcom Axiata Berhad presented their quarterly business report which saw a stabilisation in the fourth quarter with a positive growth in the mobile service revenue by 1.4%, this is an increase of RM1.50 billion to RM1.52 billion, with data revenue being the main driver (increase of 10% YoY to RM2.26 billion in FY16). So to speak, mobile internet revenue growth (19% YoY to RM2.08 billion) was the main contribution for the data revenue.


Thanks to the enhanced postpaid offering such as First Gold 80 and First Platinum, which saw a subscriber growth of 3.2% QoQ and a higher ARPU of RM80 from RM76 in Q3; the data revenue of RM611 million in Q4 accounted for 34.1% of the total revenue RM1.65 billion, while smartphone penetration was at 64% in the fourth quarter. In addition, the local telco also saw an improved quarter with a QoQ growth in normalized EBITDA (RM635 million) and normalised PATAMI (RM281 million) of 10.9 and 1.8% respectively.

Michael Kuehner, Chief Executive Officer of Celcom Axiata Berhad stated that there are three factors leading to the stabilisation, which are:

  • Network modernisation and LTE rollouts


By modernising its network through the first of its kind Single RAN SDR technology, the transmission network has been further bolstered by designing a high capacity IP microwave and ultra-high capacity fibre in the intra-city and long distance routes.

  • Digitised customer-centric approach


"The digital way is our way - in effect developing a Digital First mind-set in our organisation. Within our core operations, we are developing new and have streamlined digital processes for our daily operations such as using software to execute processes, digitising human resource practices and other enterprise applications, among others." said Kuehner.

Upon elaborating further on digitising Celcom's core operations, this will allow the company to create a strong digital presence across an ecosystem comprising customers, partners, and suppliers.

  • Attractive and simplified product


Over the past few months, Celcom has offered a lot of attractive packages such as the revamped #NoKelentong prepaid plan, as well as the postpaid plans of First Gold, First Gold Plus, and First Platinum with an addition of more data allocation flexibility with the AnydayGB add-on feature, which customers can enjoy total internet allocation by combining their weekday and weekend data.


As for this year, Kuehner added that Celcom will dive into diversification into adjacency - convergences, IoT and the enterprise business for incremental growth for 2017.

"Procurement demands will change as business evolves and therefore it is in the best interest of Celcom, its vendors and business partners, to develop a mutually supportive relationship that will expand together." said Kuehner.

That's all from Celcom's quarterly business report, stay tuned for more Celcom news at TechNave.com.