Celcomdigi (CDB) Q1 2026 earnings summary

Executive summary

• Achieved strong operational gains post-integration, maintaining market leadership and profitability while transitioning to a growth and transformation phase for 2026 and beyond.

• Revenue for Q1 2026 was RM3,208 million, stable year-over-year and down 6.9% sequentially from Q4 2025.

• Profit after tax rose 8.8% year-over-year to RM422 million, with basic EPS at 3.56 sen, up from 3.27 sen.

• EBITDA increased 4.8% year-over-year to RM1,413 million, with margin improving to 44.0%.

• Subscriber base reached 20.37 million, with Home & Fibre growing 47.8% year-over-year.

Financial highlights

• Total revenue for 1Q26 was RM3,208m, flat year-over-year and down 6.9% sequentially.

• Service revenue grew 1.6% year-over-year to RM2,697m but declined 4.7% quarter-over-quarter.

• EBIT increased 4.7% year-over-year and 23.1% quarter-over-quarter to RM729m, with margin expansion.

• PAT rose 8.8% year-over-year and 19.5% quarter-over-quarter to RM422m.

• CAPEX was RM117m, down 20.9% year-over-year and 84% quarter-over-quarter, reflecting disciplined capital allocation.

Outlook and guidance

• 2026 guidance targets low single-digit growth for both service revenue and EBIT.

• CAPEX intensity expected between 12% and 13%, with a focus on revenue-anchored investments and improved cost efficiency.

• Dividend payout policy remains at a minimum of 80% of net earnings, subject to free cash flow and reserves.

• Regulatory changes and geopolitical risks are not expected to materially impact FY2026 performance.

• 5G landscape evolving, with ongoing DNB shareholding acquisition and spectrum allocation.