Cellcard Q4 Report Reveals Double Profits In 2023
CAMGSM PLC (Cellcard), a homegrown mobile operator in Cambodia announced a doubling of its profit after tax for the full year of 2023, continuing a significant growth path with a 50 per cent increase in both 2021 and 2022.
According to an official press release issued by CAMGSM PLC (Cellcard), the company’s Q4 Report for the Financial Year 2023 revealed a substantial boost in profit compared to the previous year, demonstrating its robust financial health and operational success.
Cellcard also demonstrated outstanding performance on profit after tax, amassing 182.6 billion riel (approximately USD $45 million), which was a 220 per cent increase from the same period in 2022. The company’s total comprehensive income in 2023 also reached 181.1 billion riel (approximately USD $44.5 million), which was a 218 per cent rise from the previous year.
The Cambodian mobile network was also awarded the title of Fastest Mobile Network for the fourth quarter of 2023 by OpenSignal and Ookla. According to Ookla, Cellcard users experienced the fastest median mobile download speed at 33.74 Mbps during Q4 2023, while OpenSignal reported that Cellcard’s average download speed reached 22.3 Mbps.
“Cellcard remains Cambodia's fastest mobile network, serving over four million customers with its reliable nationwide coverage and unmatched expertise of over 20 years in the market,” Neak Oknha Kith Meng, Cellcard’s Chairman, was quoted saying in the press release.
He further added that Q4 2023 saw a strong performance in key areas:
- Total assets grew by 3 per cent, or 81 billion riel (approximately USD $20 million);
- Comprehensive income climbed by 218 per cent, or 124 billion riel (USD $30.5 million), compared to Q4 2022.
- Q4 also delivered impressive results in profit and profitability: Profit after tax (PAT) skyrocketed by 220 per cent, or 125.4 billion riel (approximately USD $30.8 million) compared to Q4 2022.
“These exceptional financial results demonstrate Cellcard's continued strength and resilience. We are confident that our strategic initiatives, coupled with our commitment to innovation and customer excellence, will continue to drive our success in the future,” added Kith Meng.
As of December 31, 2023, Cellcard reported Q4 revenue of 186.9 billion riel (approximately USD $46 million), total assets of 2,561 billion riel (up by 3 per cent, or 81 billion riel, which is approximately USD $20 million), and total equity of 1,093 billion riel (approximately USD $269,000).
The company's equity grew by 29 per cent in 2022 over 2021 and by an additional 42 per cent in 2023. Cellcard attributes its achievements in 2023 to its strategic efforts to refine operating costs and significantly enhance network quality and coverage, as highlighted in its 2023 Business Turnaround Strategy.
A key milestone for the company was the issuance of Cambodia's first internationally certified sustainability bond in November 2023, through which Cellcard raised USD $20 million. Additionally, in December 2023, Cellcard secured a sustainability loan of USD $50 million from Deutsche Bank AG, Singapore Branch. These funds, backed by a USD $70 million guarantee from Guarantco, are earmarked to expand Cellcard’s telecommunications infrastructure.
Cellcard anticipates that more than one million consumers will benefit from improved internet speed and broader coverage, enhancing their daily lives and increasing productivity. Businesses also stand to gain from these improvements, as they will experience enhanced productivity thanks to better speed and service coverage.
“Through these strategic actions, Cellcard is not only advancing its service quality but also contributing to the broader socio-economic development of Cambodia,” the press release stated.
In December 2023, CAMGSM Plc. initiated a significant transformation of its technological and business operations. This includes a comprehensive overhaul of its billing and business support systems, accompanied by an exhaustive review of its internal processes. The company’s objective is to ensure the long-term sustainability and efficiency of the business, effectively preparing it for the future.
The ‘Fourth Quarterly Report of Financial Year 2023’, published on February 15, 2024, provides an overview of Cellcard’s financial results based on Interim Financial Statements as of February 14, 2024, reviewed by Independent Auditors. The Interim Financial Statements were prepared in accordance with the Cambodian International Financial Reporting Standard (CIFRS).