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CELCOM’S FOCUS ON NETWORK LEADERSHIP DRIVES REVENUE GROWTH

Celcom Axiata Berhad’s consistent drive as a leading network provider in the industry resulted with a 1.9% year to date (YTD) revenue growth for its post-paid and prepaid services in Q2 2019. Celcom also continues its momentum with its network leadership as 4G population coverage rose to 93% whilst 4G LTE-A coverage to 81% compared to 89% and 76% respectively in 2Q18.
Idham Nawawi, Chief Executive Officer of Celcom Axiata Berhad said Celcom’s continuous focus on being the industry’s leading network provider resulted with positive performance growth and a continued delivery of the best value for customers

To date, Celcom’s LTE network covers 10 states namely Penang, Selangor, Johor, Perak with a 96% population coverage, which includes more than 25 prime cities such as Klang Valley, Putrajaya, Georgetown, Ipoh, Johor Bahru and many more. Celcom has a total of over 11,000 sites which includes over 9,000 LTE sites nationwide, delivering more data on a larger network capacity. Celcom’s strong network recorded a 39% YoY increase in average data usage to 13.3GB per month per sub in 2Q19, resulting from users enjoying the best digital experience such as video streaming, social networking and mobile gaming.

Celcom Axiata Berhad was also ranked No.1 for 4G Availability and Upload Speed Experience in Malaysia in Opensignal’s ‘Mobile Network Experience: Malaysia’ report*, April 2019, based on an independent analysis of mobile measurements recorded during the period of 1 December 2018 to 28 February 2019.

The report stated that Celcom recorded the winning score of 86.8% for 4G Availability nationwide and an Upload Speed Experience with an average connection of 6.3Mbps. Also included in the report was Celcom’s overall score for Video Experience at 61.2 points and for Download Speed Experience with an average connection of 14.7Mbps.

Celcom’s focus towards profitable segments also led to a 2.9% QoQ revenue growth for its post-paid and prepaid services, amidst a competitive industry. Its focus on high-value customers contributed positively with a RM1 increase in post-paid Average Revenue Per User (ARPU) to RM85, and a Prepaid ARPU increase by RM3 to RM37 as compared to the previous quarter. Together with Celcom’s cost discipline, as of 1H19, EBITDA was lifted by 4.7%, FCF by 5% and PATAMI by 11.7%.

Commenting on Celcom’s 2Q19 performance, Idham Nawawi, Chief Executive Officer of Celcom Axiata Berhad, said Celcom’s continuous focus on being the industry’s leading network provider resulted with positive performance growth and a continued delivery of the best value for customers.  

“Celcom continues to invest in deploying the latest end-to-end technology such as 4T4R multiple-input and multiple-output (MIMO), Carrier Aggregation, 256 Quadrature Amplitude Modulation (QAM) and many more at our LTE tower sites, leading to the delivery of the best internet connectivity and digital experiences.

“Celcom also recorded a 34% increase YoY of data traffic with 265mil GB in 2Q19 and video services make up more than 50% of Celcom’s total customer data usage, an outcome of the improved experience on our strong network is the increase of data usage by Celcom customers.

“Celcom also maintained the highest Net Promoter Score with the highest satisfaction score within the industry. Celcom’s positive Net Promoter Scores reflect the excellence of the company’s network quality, coverage and customer service at all touch points. This includes Celcom’s digital usages and transactions which recorded a 32% increase with 1.547million unique user logins on the Celcom Life app, and a 65% increase of 1.585million online transactions,” he added

Moving forward:
“Celcom will further intensify its focus towards profitability and operational excellence with smart investments which includes our continuous pace on enhancing our network infrastructure at lower operational costs and exploring new areas for growth and innovation such as home and enterprise business segments.

“We have also begun to explore collaborations with multiple technology partners and platform providers, both externally and internally, leading to the monetization of investments by delivering end-to-end Internet-of-Things (IoT) solutions for industries across key verticals in Malaysia, in preparation for the Fourth Industrial Revolution (IR4.0).

“Celcom’s continuous digital transformation journey will embark towards newer aspirations, new business models and work processes, collaborations and a new working culture that will drive a high performing culture in the organisation. We aim to be a company with 30-years’ experience but a digital start-up culture"

“Celcom will also continue its unwavering commitment towards our nation building objectives either in the form of grooming digital entrepreneurs, improving social welfare and contributing to rural digital development, ensuring no one is left behind in the digital era. Celcom continues to play a much bigger role beyond a profit-making organisation in Malaysia, as a responsible corporate citizen.

“Celcom will continue to stand alongside the nation in transforming its aspirations into reality, and we will be capitalising on these new technologies and services that are pivotal to our efforts in advancing digital societies and to serve our customers better, further supporting the development of the nation’s digital transformation and in-line with the government’s National Fiberisation and Connectivity Plan (NFCP) to accelerate the nation’s baseline of 98% broadband coverage in populated areas by 2023 with a minimum broadband speed of 30Mbps nationwide,” Idham concluded.
  
About Celcom Axiata Berhad
Celcom is Malaysia’s first and largest private mobile network operator, with over 13 million users on its 2G, 3G and 4G LTE+ networks, covering over 98% of the population. Established in 1988, Celcom is now moving towards integrated multi-access, multimedia services and Internet of Things solutions, in line with evolving technologies and consumer behaviour in Malaysia. A culture that places the customer first is reflected in our award-winning customer service, products, and other corporate accolades at a regional level. Celcom is part of the Axiata Group of Companies, one of the world’s largest telecommunications companies, across 10 Asian markets. For more information on Celcom, log on to www.celcom.com.my

Opensignal Awards – Mobile Network Experience: Malaysia report April 2019, based on independent analysis of mobile measurements recorded during the period Dec 1 – Feb 28, 2019 © 2019 Opensignal Inc.

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