CelcomDigi released its Q4 and full-year results with quarterly revenue remaining stable with increased device revenue, strong Postpaid revenue performance supported by subscriber growth, and consistent double-digit growth in the Home & Fibre segments, where subscribers reached 209k, reflecting a year-on-year increase of 78k.

However, the group noted that growth was moderated by a strategic shift away from one-time prepaid SIM acquisitions, SIM consolidation, and the impact of regulated rate reductions on interconnect revenue.

Q4 revenue came in at RM3.27 billion which remained flat compared to FY23Q4, while the group's profit took a hit coming down to RM157 million as opposed to RM435 million achieved in the preceding year's quarter.

The group noted that total costs increased by 4.1% or RM69 million, primarily driven by higher device costs from Postpaid re-contracting activities, rising 5G access costs, fiber-related expenses to support expanded fibre sales, and increased Opex from higher site rental and network maintenance costs. As a result, EBITDA declined by 4.3% or RM68 million

EBIT was further impacted by impairment and accelerated depreciation of ROU assets for network sites, while the impact on PAT was partially mitigated by the reversal of an over-provision of tax for FY2023.

For the full year, CDB recorded a total revenue of RM12.7 billion, maintaining consistent performance compared to the previous year. Group profit after tax dipped to RM1.37 billion compared to RM1.56 billion in FY23.

Postpaid consumer revenue grew with subscriber growth, while the Enterprise mobile segment saw a decline in subscriber base. Home & Fibre achieved a 28.4% revenue increase, reaching 209k subscribers. The Wholesale segment remained stable, with higher hubbing, lease line, and solution revenue offsetting the end of a domestic roaming arrangement since December 2023. Overall, revenue growth was constrained by fewer rotational one-time SIM acquisitions and SIM consolidation following the merger.

The telco said total costs rose by 5.7% or RM371 million, primarily due to higher roaming traffic and device sales, along with increased lease line and fiber-related expenses to support traffic and Home & Fibre growth. Additionally, the increase was impacted by non-recurring credit adjustments in opex from the prior year, mainly related to credit loss allowances as well as additional costs from a voluntary separation scheme in Q1'24.

EBIT decreased by 13.4% to RM2,328 million, reflecting a margin of 18.4%, primarily due to the flow-through impact of higher costs, including the impairment and accelerated depreciation of ROU assets on network sites, partially offset by the reduced depreciation impact, as assets affected by changes in useful life post-merger were fully depreciated by early 2024.

PAT was RM179 million lower than FY2023, with the decline partially mitigated by lower taxation due to the reversal of an over-provision of deferred tax liabilities and the provision for green tax incentives during the yea