Celcom’s Growth in Double Digits, LTE-Readiness in 7 Sites

Celcom Axiata Berhad sustained positive momentum registering continuous growth in most key indicators in the first quarter of 2012 despite it being seasonally the most challenging quarter in the year.

Thrusting forward with a historic 24th consecutive quarter is an important milestone for the organisation in commemorating its 24 years in service to the country. Celcom started the year on a bright note with revenue up 10-percent to RM1.91billion as compared to RM1.74billion in the same period last year. EBITDA (Earnings Before Interest, Tax, Depreciation and Amortisation) of RM840 million, showed an increase of 4-percent year-on-year (YoY) at a margin of 44-percent.

The revenue growth was supported by a solid momentum in service revenue which grew by 8-percent YoY. Attractive data bundling offerings and successful voice resuscitation also stimulated usage and reinforced service revenue growth in the first quarter promising profitability as the company’s PATAMI (Profit After Tax and Minority Interests) registers 7-percent YoY to RM514million compared to RM481million in the same period last year.

At a subscriber base of 12 million customers, Celcom continued its lead in the mobile broadband subscriber base touching 947,000 mark with 8-percent more users from a year ago. Overall broadband revenue grew by 15-percent YoY magnifying its contribution to total revenue.

Additionally, continuous modernisation of mobile network has intensified growth in advanced data services contributing 22-percent to total revenue with an increase of 12-percent YoY.

Various initiatives in Q1 2012 contributed to the quarter’s results and they include :

• Call Me Tone A Thon campaign which encouraged customers to download mobile contents via The Cube, Celcom’s multimedia branded channel and stand to win attractive prizes.
• Who Will Win Campaign, a voice resuscitation initiative which yielded favourable results.
• Increased take up of devices in conjunction with new launches of devices bundled with attractive plans.

Commenting on Celcom’s Q1 2012 results, Dato’ Sri Shazalli Ramly, Chief Executive Officer of Celcom Axiata Berhad said, “We are more than delighted to have started the year marvellously despite it being traditionally a weak quarter. We will continue to innovate the way people communicate by offering unique experiences through our innovative campaigns and attractive product bundles. Customers’ experience will continue to be a key ingredient in all our products and services. Although we have done exceptionally well in the last 24 quarters, the best is still yet to come for Celcom. The next 24 quarters will be a different game plan altogether as we are looking at investing in Digital Services with an impending focus on data-on-demand for our customers.”

Moving forward

This year, Celcom will continue to strengthen its brand by focusing on its Celcom Retail Outlet transformation to transform the customer relationship management and concurrently drive customer focus through effective sales force. Celcom will also continue to prioritise non–voice services, emphasising data access and innovative content offerings, through innovation and bundling programs. To support its smartphone ecosystem, Celcom will continue to provide a reliable and optimum platform with its investment in new technologies like LTE, better policy management, bandwidth, seamless data connectivity, across cellular, WiFi , integrated High Speed Broadband (HSBB) networks whilst introducing more relevant content and Value Added Services (VAS) over the mobile medium.

Celcom has also successfully rolled out network modernisation by completing single RAN (radio access networks) in Eastern, Sabah and Sarawak region moving towards being a ‘Best of Breed’ network. This ultimately promises faster download speed and supports High Definition Voice. Additionally, the company has also rolled out LTE-ready networks for all its customers and to date has successfully completed trials at seven sites promising them faster download speed and more than five times throughput capacity.