Digi Q2 earnings rise 7% to RM384.34mil

Digi is back in the Securities Commission

KUALA LUMPUR: Digi.com Bhd's net profit in Q2 ended June 30 rose 7% to RM384.34mil from RM358.89mil in the previous corresponding quarter on the back of business growth and improved operational efficiency.

Revenue for the quarter came in at RM1.62bil, 4.2% higher than RM1.55bil in the year-ago quarter.

"The stronger growth and efficiency momentum for the quarter was attributed to the company’s disciplined acquisition quality, strong focus on data adoption and monetisation, digitisation across its businesses, and strong management on its cost structures. 

"This has resulted in a higher postpaid subscriber mix, better quality prepaid base, and good traction on new digital innovations," the group said in a press statement.

According to Digi, Internet revenue grew 26.4% year-on-year to RM805mil while data traffic volume surged 73% and average monthly data usage among Internet subscribers soared to 8.2GB.

There was also a pick-up in postpaid plans, which turned in a revenue growth of 15.5% year-on-year to RM619mil, while postpaid Internet revenue rose 32.5% to RM400mil.

In the prepaid segment, growth in prepaid Internet revenue helped to cushion the revenue decline due to legacy prepaid voice and messaging services. Prepaid revenue slipped 5.7% year-on-year to RM865mil.

Average revenue per user (ARPU) in the postpaid and prepaid segments wre RM77 and RM32 respectively. The postpaid subscriber base grew 3% to 2.65 million while the prepaid segment continued to see fewer subscribers, shrinking 7%, due to plan conversions to postpaid.

Earnings for the quarter after accounting for MFRS15 and 9 was RM384mil or 4.9 sen per share.

The board of directors has declared a second interim dividend of 4.9 sen per share payable on Sept 28, 2018.