Celcomdigi (CDB) Q2 2026 earnings summary

Executive summary

• Achieved resilient growth in 2Q 2026, with service revenue up 1.2% quarter-over-quarter and 1.4% year-over-year, supported by operational discipline and strategic investments.

• Revenue for Q2 2026 was RM3,186 million, up 0.3% year-over-year, with service revenue growth offsetting lower device sales.

• Maintained market leadership with over 20.3 million subscribers and robust digital channel adoption, enhancing customer experience and cost-to-serve.

• Declared an interim dividend of 3.4 sen per share, reflecting a strong commitment to shareholder returns.

• Operational efficiency initiatives delivered RM141 million in cost savings for H1 2026.

Financial highlights

• 2Q 2026 service revenue reached RM2,730m, up 1.2% Q-Q and 1.4% Y-Y; EBIT at RM712m, down 2.3% Q-Q and 3.3% Y-Y due to one-off settlement and stamp duty costs.

• Q2 2026 revenue: RM3,186 million (Q2 2025: RM3,178 million); H1 2026 revenue: RM6,394 million (H1 2025: RM6,388 million).

• PAT for 2Q 2026 was RM405m, down 4.0% Q-Q and 7.7% Y-Y; normalised PAT at RM437m, up 3.5% Q-Q and 0.9% Y-Y.

• 1H 2026 service revenue totaled RM5.4b, up 1.5% YTD; EBIT at RM1.4b, flat YTD; PAT at RM827m, normalised PAT at RM859m, down 1.1% YTD.

• Basic EPS for Q2 2026: 3.39 sen (Q2 2025: 3.74 sen); H1 2026: 6.96 sen (H1 2025: 7.01 sen).

Outlook and guidance

• 2026 guidance maintained: low single-digit growth for service revenue and EBIT, CAPEX intensity targeted at 12%-13%.

• FY2026 CAPEX investments remain focused on network efficiencies and customer experience enhancements.

• Focus remains on operational efficiency, cost optimisation, and sustainable margin improvements.

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