CelcomDigi Profit Forecast Cut 1-4% on Spectrum Costs

Quick Answer: CIMB Securities has cut CelcomDigi Bhd (KL:CDB) core net profit forecasts for FY2026 to FY2028 by 1% to 4% to factor in higher spectrum amortisation. The cut follows a RM381.75 million payment on Oct 15 for new spectrum, while the EBITDA forecast is largely unchanged. For shareholders, the hit sits below EBITDA, and efficiency savings are expected to absorb the extra annual fees.

CelcomDigi spectrum costs are now trimming earnings forecasts for CelcomDigi Bhd (KL:CDB). CIMB Securities said in a note on Monday that core earnings for the financial year ending Dec 31, 2026 (FY2026) to FY2028 could take a small hit of 1% to 4%.

Why Is CelcomDigi’s Spectrum Cost Cutting Its Profit Forecasts?

CIMB Securities trims CelcomDigi’s FY2026-FY2028 earnings forecasts on spectrum cost — CIMB Securities cut CelcomDigi’s FY2026-FY2028 core profit forecasts on higher spectrum costs

The forecast cut follows an assignment to boost CelcomDigi’s network capacity and coverage. The company paid RM381.75 million on Oct 15 to strengthen its mobile network as part of a spectrum award from the Malaysian Communications and Multimedia Commission (MCMC).

CIMB Securities cut its FY2026-FY2028 core net profit estimates to factor in higher amortisation. Spectrum amortisation spreads the cost of the licences across their term.

CelcomDigi Profit Forecast Cut 1-4% on Spectrum Costs — Photo: TheEdge

What Spectrum Did CelcomDigi Win From MCMC?

2x20MHz of spectrum in the 2600MHz band, awarded for four years
2x5MHz of spectrum in the 900MHz band, awarded for five years

The 900MHz block carries the longer term at five years. The Edge has also reported that CelcomDigi gets formal spectrum assignments and discloses annual fees.

Does the Spectrum Bill Hit CelcomDigi’s EBITDA?

Not in the CIMB Securities model. The research house says its Ebitda forecast is largely unchanged because the additional annual fees are expected to be offset by cost efficiencies from holding the spectrum rights.

The upfront cost is expected to be partly offset by lower taxes, according to CIMB Securities.

What Is Ahead for CelcomDigi’s 3QFY2026 Core Profit?

CIMB Securities expects 3QFY2026 core net profit to rise 1%-3% quarter-over-quarter to around RM430 million. The driver is cost savings from the RM470 million 2026 efficiency target. Results are due Nov 19.

Service revenue is likely to stay flat as prepaid sales soften under stricter MCMC SIM registration rules. Lower dealer commissions and cheaper SIM cards are expected to cushion the impact.

Investors tracking the Nov 19 release can compare quarterly numbers against the revised forecasts using AI Stock Analysis for Malaysians.

Why Did CIMB Securities Drop CelcomDigi’s DNB Equity Injection?

CIMB Securities has removed its earlier assumption of a RM200 million equity injection by CelcomDigi into Digital Nasional Bhd (DNB) in FY2027. The change follows DNB’s completion of its RM5.2 billion financing exercise.

That cash call no longer appears in the FY2027 forecasts.

Is CIMB Securities’ BUY Call on CelcomDigi Still Intact?

CIMB Securities maintained its ‘buy’ call and target price of RM3.65 on CelcomDigi. The research house expects the high upfront spectrum cost to be partly offset by lower taxes and operational efficiencies.

Key Takeaways

CIMB Securities cut CelcomDigi’s FY2026-FY2028 core net profit forecasts by 1%-4% on higher spectrum amortisation.
The EBITDA forecast is largely unchanged as additional annual fees are offset by cost efficiencies.
3QFY2026 core net profit is expected to improve 1%-3% quarter-over-quarter to around RM430 million, with results due Nov 19.
The RM200 million DNB equity injection has been removed from the FY2027 forecast.

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

Disclaimer: This article is for information only and is not investment advice. Ratings, target prices and forecasts belong to CIMB Securities. Always do your own research before making any decision on CelcomDigi shares.

Frequently Asked Questions

How much is CelcomDigi’s core profit forecast cut?

CIMB Securities has cut CelcomDigi’s FY2026 to FY2028 core net profit forecasts by 1% to 4%. The cut reflects higher spectrum amortisation after the RM381.75 million payment on Oct 15.

How much did CelcomDigi pay for spectrum?

CelcomDigi paid RM381.75 million on Oct 15 as part of a spectrum award from MCMC. The package covers 2x20MHz in the 2600MHz band for four years and 2x5MHz in the 900MHz band for five years.

How does CelcomDigi spectrum cost affect its EBITDA?

CIMB Securities says CelcomDigi’s EBITDA forecast is largely unchanged. The additional annual fees are expected to be offset by cost efficiencies from holding the spectrum rights.

What is CelcomDigi’s 3QFY2026 core profit expected to be?

CIMB Securities expects 3QFY2026 core net profit to improve 1%-3% quarter-over-quarter to around RM430 million. CelcomDigi’s 3QFY2026 results are expected to be released on Nov 19.

Source: View Original Article — The content is based on the original publisher. Refer to the original content for accurate info. Contact us for any changes.

Research Note: Analysis referenced in this article is based on research published by CIMB Securities. This blog summarises publicly available information for educational purposes only.