The Star: Smartphone subsidy may hit Celcom margin

The Star | April 23, 2011 | Leong Hung Yee

KUALA LUMPUR: Celcom Axiata Bhd expects high subsidy on smartphones will put a dent on its earnings before interest, tax, depreciation and amortisation (EBITDA) margin.

“It (subsidy) will put a pressure on our ebitda margin but we will have to find ways so as not to crush our EBITDA,” chief executive officer Datuk Seri Shazalli Ramly said after launching iPhone 4 for its enterprises customers.

“We will have to be creative in the way we create our smartphone packages and build a smart infrastructure. We are now sharing sites withDiGi.Com Bhd,” he said, adding that it had managed to sustain its EBITDA margin for the last 19 consecutive quarters.

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