Celcom Axiata to spend RM3bil on capex

Friday June 4, 2010




By LEE KIAN SEONG

lks@thestar.com.my




This is to further improve telecommunication infrastructure



KUALA LUMPUR: Celcom Axiata Bhd plans to spend RM3bil from 2010 to 2012 for capital expenditure (capex) to further improve its telecommunication infrastructure.



Chief executive officer Datuk Seri Shazalli Ramly said the company would spend about RM1bil each year, mainly on information technology and network building.



The company will spend RM870mil on information technology and network related segments this year.



It spent RM780mil capex in 2009.



On its first quarter ended March 31, Celcom posted a profit after tax and minority interest (patami) of RM441mil, a 24% increase from RM357mil a year ago.





Datuk Seri Shazalli Ramly (right) and Chari TVT with Celcom’s Blue Bears after the briefing



Its revenue improved 15% to RM1.7bil compared with the last corresponding period.



“The rise of patami was due to the increase in revenue, subscribers and the implementation of our smart-spend measures,” said chief financial officer Chari TVT at a briefing yesterday.



The company earnings before interest, tax, depreciation and amortisation for the first quarter increased by 16% to RM773mil compared with the same period last year.



Moving forward, Shazalli said the company would continue expanding its coverage and capacity and substantially increase its investment in network infrastructure to meet consumers’ demand.



“Celcom will continue its aggresive marketing strategy and introduce more innovative campaigns to the market with a segmentation-based approach,” he said.



He said the company had planned 500 on-ground events for FIFA World Cup, adding that it planned to spend less than 4% of its quarterly revenue on advertising and promotional activities.



On Celcom’s earnings prospect this year, he said the company aimed for double-digit growth for its patami, driven by efficient spending measures, aggresive campaigns, expansion and product offerings.



Shazalli said the company was aspired to continue its broadband dominance through aggresive broadband offerings and services as well as focus on high-quality customer touch-point experience.



The company retained its leading position in mobile broadband with a total of 635,000 subscribers.


http://biz.thestar.com.my/news/story.asp?file=/2010/6/4/business/6397439&sec=business