897k prepaid users ditched Celcom in 2Q16


897k prepaid users ditched Celcom in 2Q16

Axiata Group Berhad, the parent company of Celcom Axiata Bhd announced its Quarter 2, 2016 (2Q16) financial results yesterday.

As of the second quarter of 2016, Celcom Axiata’s mobile subscriber base are lower by 841k, at 11.23 million. It had 12.08 million in 1Q16.

The number of prepaid subscribers has suffered loss of a total 897k to 8.34 million as compare to 9.24 million in quarter 1 of 2016.

According to Axiata, prepaid subscriber base declined 9.7% QoQ due to competition with other telco operators such as Maxis, Digi, Umobile and so on.

As for postpaid, there increased to 2.9 million subscribers. Among 2.9 million subscribers, 57k of them are new postpaid subscribers, including some 37k on the First Gold 80 postpaid plan. Moreover, smartphone penetration in the network has increased 4% to 66% in quarter 2.

“The first quarter of 2016 remained challenging for Celcom due to heightened competition particularly in the postpaid and overseas foreign workers (OFW) segments, as well as the impact of the new regulation on value added services (VAS) where almost all VAS had to be temporarily halted due to customer complaints.” commented by Axiata Group representative.

Dato’ Sri Jamaludin Ibrahim, President and Group Chief Executive Officer of Axiata said “Celcom has been aggressively rolling out more LTE sites and a number of competitive and exciting data products and services over the last two months. I am confident with these initiatives in place, Celcom will be back on track to finish the year respectably,”

In short, Celcom has lost 897k of prepaid subscribers and postpaid subscribers remain a steady grow. Besides that, the revenue had grew by 5.4% to RM5.0 billion YoY while EBITDA was up by 7.7% to RM1.9 billion mainly from the easing of expenses.

EBITDA margin at 37.4% was its highest in the last seven quarters contributed mainly by XL, Dialog and Smart.