Opex Savings To Drive CelcomDigi's Earnings Growth In FY2027 - RHB IB

KUALA LUMPUR, July 7 (Bernama) -- Stronger realisation of operating expenditure (opex) savings is expected to drive CelcomDigi Bhd's earnings growth of 18.4 per cent in the financial year ending 2027 (FY2027), as integration synergies gain momentum after the completion of its information technology (IT) platform upgrade.

RHB Investment Bank Bhd (RHB IB) expects CelcomDigi integration synergies to pick up significantly in 2027 after the completion of its IT platform upgrade, which is targeted for the first quarter of 2027 (1Q 2027). 

"It is maintaining the FY2026 earnings before interest and taxes (EBIT) guidance of "low single-digit growth" and targeting opex savings of RM465 million, with RM41 million booked in 1Q 2026.

"CelcomDigi should also see larger direct cost savings from the migration of 4G traffic to 5G as 75 per cent of traffic is still on 4G," the bank said in a note today. 

However, RHB IB lowered FY2026-2028 core earnings forecasts by 3.4 per cent, 4.6 per cent and three per cent after factoring in CelcomDigi's share of Digital Nasional Bhd (DNB) losses from 3Q 2026 and higher 5G access costs, partly offset by opex synergies. 

As such, RHB IB maintained a "buy" call on CelcomDigi, but the target price was lowered to RM3.50 with the investments in DNB reflected. 

-- BERNAMA