CelcomDigi's core net profit to increase up to 6.0pct in Q3

KUALA LUMPUR: Analysts predict CelcomDigi Bhd's core net profit (CNP) will rise by up to six percent in Q3 2026, despite possible declining prepaid revenue. CIMB Securities Sdn Bhd analyst Choong Chen Foong anticipates CNG to grow quarter-on-quarter by one to three percent and year-on-year by four to six percent, reaching between RM430 million and RM440 million.

This boost is anticipated due to lower costs as CelcomDigi achieves its RM470 million cost savings target for FY26. However, service revenue could remain steady due to stricter SIM registration rules introduced by the Malaysian Communications and Multimedia Commission (MCMC) on August 26. These rules limit Malaysian users to five SIM cards per provider, require live biometric verification for new registrations, and mandate parental or guardian consent for subscribers aged 12 to 17.

The company anticipates costs to be offset by lower dealer commissions and SIM card costs. CelcomDigi will announce Q3 results on November 19. The telecom giant also secured additional spectrum assignments in the 2,600 MHz and 900 MHz bands from MCMC for a total upfront fee of RM382 million. This will improve network capacity and coverage, helping CelcomDigi meet stricter Mandatory Standards for Quality of Service while minimizing the need for extensive cell densification.

However, this will lead to higher spectrum amortisation costs, resulting in a decrease in CIMB Securities' FY26 to FY28 core net profit forecasts by one to four percent.