Business

Higher Q4 mobile service revenue for Celcom

Kuehner became CEO last September.

Kuehner became CEO last September.

Syndicated News
Written by Syndicated News

KUALA LUMPUR — March 8, 2017: Celcom Axiata recorded a better fourth quarter financial position, with an increase in mobile service revenue by 1.4 per cent to RM1.52 billion.

The better performance was driven by data revenue which had increased 10 per cent, year-on-year (yoy), to RM2.26 billion recorded in the 2016 financial year.

This increase was mainly contributed by mobile Internet revenue growth of 19.0 per cent, yoy, to RM2.08 billion, the company said in a statement today.

Its Q4 data revenue of RM611 million accounted for 34.1 per cent of total revenue of RM1.65 billion while smartphone penetration stood at 64 per cent.

The company’s Q4 normalised earnings before interest, tax, depreciation and amortisation also improved on a quarter-to-quarter (q-o-q) basis by 10.9 per cent to RM635 million.

Its normalised profit after tax and minority interest for the quarter increased 1.8 per cent, q-o-q, to RM281 million.

Chief Executive Officer Michael Kuehner said factors leading to the stabilisation included the company’s investments in network modernisation and LTE rollouts, a digitised customer-centric approach and simplified product bundling.

The telecommunication company had embarked on digitising its core operations and customer service and experience, as well as, simplifying products and services to become a customer-focused digital company.

“We are focused on delivering higher value and superior customer experience to our customers. We will continuously enhance our network quality and diversify our products and services, to complement their evolving lifestyles.

“Solid productivity improvement initiatives and efficient marketing tools will further contribute to a highly commendable revenue growth, moving forward,” he said.

On the company’s 2017 outlook, Celcom expects flat market revenue outlook, video usage to continue driving data growth as well as opportunities in adjacent markets.

Hence, the company will set aside a capital expenditure in line with 2016 level.

Among Celcom’s 2017 focus areas are a seamless and best connectivity, personalised customer experience, to grow adjacencies, digitalisation and simplification and cost efficiencies.

Kuehner said that Celcom’s diversification into adjacency such as convergences, Internet-of-Things and the enterprise business would drive some of the incremental growth for the company this year. — Bernama

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