CelcomDigi Q3 Core Profit Up to 6%: Spectrum Costs Loom

Quick Answer: CIMB Securities expects CelcomDigi core net profit (CNP) to rise up to 6% in the third quarter of 2026, to between RM430 million and RM440 million. Lower operating costs as the company delivers its RM470 million FY26 cost savings target are the main driver, offsetting flat service revenue. Shareholders should track the RM382 million spectrum upfront fee, which raises amortisation costs, when results are announced on Nov 19.

CelcomDigi core net profit is expected to rise up to 6% in Q3 2026, according to CIMB Securities. Analyst Choong Chen Foong sees CNP climbing 1-3% quarter-on-quarter and 4-6% year-on-year. CelcomDigi (6947) reports its third-quarter results on Nov 19.

Why Is CelcomDigi’s Core Net Profit Rising in Q3?

CelcomDigi core net profit Q3 2026 technology and telecom network — Cost savings, not revenue growth, drive the expected Q3 profit lift.

Lower operating costs are the main driver. CelcomDigi is progressively delivering its RM470 million cost savings target for FY26.

Lower costs are expected to outweigh a weaker top line. Analysts note that the savings are the key lever for the quarter.

Will Prepaid SIM Rules Hit CelcomDigi’s Service Revenue?

Service revenue could stay flat both quarter-on-quarter and year-on-year. Softer prepaid revenue following the tighter SIM registration rules from the Malaysian Communications and Multimedia Commission (MCMC) on Aug 26 is partly to blame.

The new rules cap Malaysian users at five SIM cards per telecommunications provider. New registrations require live biometric verification, and subscribers aged 12 to 17 need parental or guardian consent.

CIMB Securities expects lower dealer commissions and lower SIM card costs to cushion the bottom line. Choong said the impact on profit should be limited by these savings.

What Does the RM382 Million Spectrum Deal Cost CelcomDigi?

CelcomDigi secured additional spectrum assignments from MCMC for a total upfront fee of RM382 million. The package covers 2x20MHz in the 2,600MHz band for four years and 2x5MHz in the 900MHz band for five years.

2,600MHz band: annual fee of RM42 million
900MHz band: RM3,500 per apparatus, depending on network rollout

The spectrum boosts network capacity and coverage. It helps CelcomDigi meet MCMC’s stricter Mandatory Standards for Quality of Service while minimising the need for extensive cell densification.

The assignments increase spectrum amortisation costs. The upfront payment is partly offset by lower taxes from reduced pre-tax profit.

CIMB Securities says EBITDA forecasts remain largely unchanged. Cost efficiencies from holding the spectrum rights offset the additional annual fees.

What Is CIMB Securities’ Target Price for CelcomDigi?

CIMB Securities maintained its Buy call on CelcomDigi with an unchanged target price of RM3.65. It lowered FY26 to FY28 core net profit forecasts by 1-4% to account for higher amortisation.

CIMB also removed its earlier assumption of a RM20 million equity injection into Digital Nasional Bhd (DNB) in FY27. The change follows DNB’s completion of its RM5.2 billion financing exercise.

Key Takeaways: CelcomDigi Q3 at a Glance

CelcomDigi CNP is forecast to rise up to 6% in Q3 2026, to RM430 million-RM440 million.
The RM470 million FY26 cost savings target is the main profit driver.
Service revenue could stay flat due to MCMC’s prepaid SIM rules.
The RM382 million spectrum fee lifts amortisation, while EBITDA forecasts hold.
CIMB Securities keeps its Buy call and RM3.65 target.

Readers tracking earnings revisions can compare these numbers with tools like AI Stock Analysis for Malaysians.

📊 On AI Stock Terminal: CDB quarterly results · CDB announcements

Disclaimer: This article is for information only and is not financial advice. Figures come from CIMB Securities’ note and may change. Always do your own research before making any investment decision.

Frequently Asked Questions

What is CelcomDigi’s core net profit forecast for Q3 2026?

CIMB Securities expects CelcomDigi’s core net profit to rise up to 6% in Q3 2026, to between RM430 million and RM440 million. The forecast implies a 1-3% increase quarter-on-quarter and a 4-6% increase year-on-year.

How much is CelcomDigi paying for the new spectrum?

CelcomDigi’s additional spectrum assignments from MCMC carry a total upfront fee of RM382 million. The 2,600MHz band also carries an annual fee of RM42 million.

What is CIMB Securities’ target price for CelcomDigi?

CIMB Securities maintained its Buy call with a target price of RM3.65. It lowered FY26 to FY28 core net profit forecasts by 1-4% due to higher amortisation.

When does CelcomDigi announce its Q3 results?

CelcomDigi is scheduled to announce its third-quarter results on Nov 19. The results will show whether lower operating costs offset the expected flat service revenue.

Why could CelcomDigi’s service revenue stay flat?

CIMB Securities says softer prepaid revenue after MCMC’s tighter SIM registration rules on Aug 26 could keep service revenue flat both quarter-on-quarter and year-on-year. The rules limit users to five SIM cards per telecommunications provider.

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