KUALA LUMPUR: CelcomDigi Bhd's net profit rose 18.4 per cent to RM376.46 million in the first quarter ended March 31, 2024 (1Q24) from RM317.92 million a year ago, underpinned by a reversal of over-recognition of tax provision.
The group, however, registered a lower revenue of RM3.15 billion for the quarter compared to RM3.18 billion previously.
Its earnings per share came in higher at 3.21 sen compared to 2.71 sen in 1Q23, according to the group's filing to Bursa Malaysia today.
According to CelcomDigi, its service revenue eased 1.2 per cent or RM32 million to RM2.67 billion against the corresponding quarter of preceding year.
This was attributed by lower prepaid and postpaid segments which were impacted by the lower interconnect rate, reduced bulk messaging traffic and overall softer usages.
Meanwhile, the decline in both prepaid and postpaid revenue was cushioned by the strong performance in the home and fibre and wholesale segments, recording a combined increased sales of 22 per cent or RM19 million.
Home and fibre recorded a 35.5 per cent growth in the subscriber base, while wholesale revenue increased from higher traffic demand.
The group's total costs increased by 9.3 per cent or RM155 million from a year ago, primarily due to higher cost of sales in line with higher roaming and costs incurred from a voluntary separation scheme.
CelcomDigi declared a first interim dividend of 3.5 sen per share, which will be paid on June 28.
CelcomDigi said its focus remains steadfast on completing network and IT integration initiatives while maximising synergy realisation, as the group progress into the second year of merger.
It has completed 44 per cent of the nationwide network integration and modernisation programme, ahead of schedule in its three-year post-merger transformation journey.
"We are committed to innovation and differentiation, leveraging our integrated capabilities to deliver compelling value propositions and superior experiences to customers.
"The successful execution of integration and synergy realisation initiatives positions us for sustained growth and market leadership, as we continue to capitalise on the synergies and opportunities unlocked by the merger," it noted.
Despite the challenge of declining average revenue per user (ARPU), which is reflective of the broader market conditions and competitive dynamics, CelcomDigi said proactive measures are taken to stabilise ARPU.
The group added that through targeted initiatives such as data-driven pricing strategies and value-added service bundling, competitiveness is maintained while ensuring customer affordability.
Concurrently, it said the focused digital transformation agenda aims to innovate customer experiences through digital platforms and omnichannel engagement.