Digi kicks off Q2 results season with higher earnings


KUALA LUMPUR: Digi.com Bhd started the second quarter corporate results season by registering a slightly higher net profit of RM392.47mil and declared an interim dividend of five sen a share.

It said on Friday the net profit was an improvement from the RM384.34mil a year ago. Its revenue, however, fell by 4.3% to RM1.548bil from RM1.618bil. Earnings per share were 5.50 sen compared with 4.94 sen.

Commenting on the results, Digi said it  remained committed in delivering a resilient performance in Q2 with solid double digit postpaid revenue growth to RM697mil and actively grew internet revenue to 62.7% of service revenue or RM879mil. 

“Service revenue strengthened 0.7% quarter-on-quarter while year-on-year decline narrowed to 2.2%,” it said. 

Digi said overall internet subscriber base strengthened to 9.3 million or 81.7% of subscriber base, an increase of 539,000 from a year ago while data traffic volumes surged 49% year-on-year and monthly data usage amongst its subscribers increased to 11.4GB. 

“Our 4G LTE and LTE-A network coverage reached 90% and 70% of population fuelling higher 4G subscriber base to 8.5 million or 90.6% of our smartphone users. 

“Meanwhile, MyDigi monthly active users climbed to 3.3 million with encouraging upsell transactions on MyDigi and digital distribution channels for the quarter. Our B2B segment has also made good progress with positive growth from business solutions and connectivity,” it said. 

Digi said it stepped up its postpaid growth activities via the revamped Phone Freedom 365 programme, Digi Postpaid Family plans along with solid demand for entry level postpaid plans from prepaid conversions. 

“We registered another 71,000 postpaid net adds to 2.9 million postpaid subscribers,” it said. 

Digi said in Q2, it delivered stronger sequential performance across service revenue, earnings before interest, tax, depreciation and amortisation (Ebitda) and profit after tax (PAT) along with narrowed year-on-year decline, relatively resilient compared to the Malaysian mobile market. 

“With a solid focus on driving sustainable business and investing in what matters most, we registered robust organic postpaid revenue growth of 12.6% year-on-year and internet revenue growth of 9.2% along with robust Ebitda and earnings although challenged by prolonged aggressive data offerings in the market, channel transformation and device strategy shift during the year,” it said.

In the first half, it reported a 4.7% decline in net profit to RM733.98mil compared with RM770.45mil in the previous corresponding period. Its revenue was down 6% to RM3.057bil from RM3.252bil.

Corporate News , Telcos