Telecommunications network provider CamGSM Plc, which owns Cellcard, posted an 8.6 percent year-on-year rise in net profit to $11.2 million in its second quarter ended June 30, 2023 compared to $10.3 million.
According to its delayed filing with Cambodia Securities Exchange (CSX) today, quarterly revenue, however, slipped 4.3 percent to $45.3 million from $47.4 million a year ago due to lower telecom services revenue.
For the cumulative six-month period, net profit rose 36.5 percent to $22.7 million from $16.6 million in the same period last year, as revenue slid 1.3 percent to $91.3 million from $92.4 million in 2022.
CamGSM installs and operates all equipment and machinery used in connection with the operation of the GSM mobile cellular telephone network nationwide and products which are ancillary complementary, or component parts of such equipment.
Owned by tycoon Kith Meng’s Royal Group of Companies Ltd, the company also markets and sells telecommunication products and services.
Based on its CSX filing, CamGSM said its revenue was impacted by new rules and regulations on product offerings by regulators.
The second quarter is traditionally a challenging quarter, particularly after the Khmer New Year as consumers limit their spending after the celebration, it said.
However, the second fiscal quarter of 2023 has seen a “significant downward impact” on revenue mainly due to several reasons.
This includes the migration of the existing price plans to the Telecommunication Regulator of Cambodia-regulated new Serey price plan by the end of the first quarter. “Consumers are still adapting to the new plans,” it said.
CamGSM also pointed out that revenue was affected by the shutting down of key revenue-generating services, such as the “$10,000 Raffles” and “Balance Advance”, in the fourth quarter of 2022.
In addition, the launch of Serey+ data plan in April diluted average revenue per user, as the “offering is much bigger than previous Serey plans”.
“The slowdown has also been caused by macroeconomic challenges especially right after the SEA Games when consumers became more conservative in their spending,” it said.
That being said, CamGSM is confident that its “complete suite of connectivity services for both personal and corporate needs” would continue to drive financial growth through mobile and digital lifestyle services.
It also assured continuous network coverage and quality enhancement to improve its service to customers.
The stock closed unchanged at 2,500 riel for a full market capitalisation of 4.9 trillion riel ($1.2 billion).