Digi posts weaker 2Q earnings of RM220.04mil, declares div of 2.8c

KUALA LUMPUR: Digi.com Bhd announced weaker year-on-year (y-o-y) earnings in the second financial quarter ended June 30, 2022, on higher net finance costs and higher tax provision due to Cukai Makmur.

Meanwhile, service revenue was impacted by lower contribution from the prepaid segment.

In a statement, the telco said said net profit was down 21.39% y-o-y to RM220.04mil while revenue slipped 4.9% to RM1.54bil.

For the quarter, earnings per share was 2.83 sen, which compared to 3.6 sen in the same quarter in 2021.

The group declared a second interim dividend of 2.8 sen a share, equivalent to RM218mil, for shareholders on the register as at Sept 1, 2022, and payable on Sept 30, 2022.

According to Digi, prepaid service revenue for the quarter was down 4.1% y-o-y to RM616mil following the exit of the low-end rotational migrant segment.

It said the declining prepaid performance offset the revenue growth recorded in postpaid service revenue, which was up 1.13% y-o-y to RM629mil.

Blended mobile average revenue per user remained resilient at RM42, it said.

Nonetheless, the telco pointed out it was on a sequential growth trend given that its service revenue had risen 1.3% over the immediate preceding quarter to RM1.33bil.

It said postpaid revenue was up 0.2% quarter-on-quarter (q-o-q) on healthy demand for smart bundles, B2B and broadband while the prepaid segment recorded sequential revenue growth of 0.2%, the first time after three consecutive quarters.

Of special note was improvement in the fibre and digital segments, where revenue jumped 40% q-o-q and 21.7% q-o-q respectively on higher demand for faster connectivity and gaming activities.

"Total data traffic rose 4.9% Y-Y, while monthly average data per user stood at 21.9GB.

"Average download speeds further improved to 44.1 Mbps from 42.2 Mbps in the last quarter, reflecting the company’s network leadership position and its commitment to providing the fastest and most consistent network experience to its customers," said the telco.

Moving forward, Digi acting CEO and chief marketing officer Praveen Rajan said the telco will continue investing in modernising its network and expanding access to connectivity.

"This sets us in the right pace and direction as we commit to delivering better quality of internet experience for our customers, in line with Jendela’s aspirations, as well as powering Malaysia’s digital economy agenda,” he added.

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Digi , telco , postpaid , prepaid , Praveen Rajan


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