Digi alllocates RM904m for capex this year

More freebies: Users need to keep their prepaid line active to enjoy the free data every weekend.

KUALA LUMPUR: Digi.com Bhd has allocated RM904 million for capital expenditure (capex) this year to improve its network and expand its coverage.

Chief executive officer Albern Murthy said the telecommunications company spent RM171 million in the first quarter ended March 31, 2016.

He said Digi would focus on improving its long-term evolution (LTE) and LTE Advance network and increase its current coverage of 77% in the first quarter this year versus 33% in the corresponding quarter last year.

Digi would also focus on the speed of the LTE roll-out, he told a press conference after the company's AGM in Kuala Lumpur on Friday. 

Murthy said the company would give priority to expanding its subscriber-based and Internet segments.

On Digi's performance this year, he said: "It is going to be flat due to the challenging market environment."

Digi's pre-tax profit fell to RM533.6 million in the first quarter compared with RM626 million last year, while revenue declined to RM1.65 billion from RM1.79 billion previously.

DiGi's customers totalled 12.3 million, supported by a steady increase in active Internet customers of 7.9 million or 64.2% of its total base, while 4G LTE customers stood at 2.9 million. 

Postpaid service revenue registered a growth of 6.9% year-on-year and 3.1% quarter-on-quarter while postpaid subscriber base strengthened to 8.2% year-on-year to 1.9 million customers.

Its postpaid Internet subscribers grew to 1.5 million, representing 80.3% of the company's postpaid subscriber base and contributed RM207 million to revenue. - Bernama