Digi makes RM392m in Q2

  • Business
  • Saturday, 13 Jul 2019

Murty: We aim to deepen our customer insight capabilities and digitalisation efforts to drive differentiated customer experiences, connecting more Malaysians.

PETALING JAYA: Digi.com Bhd reported its second quarter net profit ended June 30 rose to RM392.48mil from RM384.34mil in the same quarter a year ago.

Net profit for the company rose despite its quarterly revenue dropping 4.3% year-on-year to RM1.549bil.

But on a quarter-to-quarter comparison, the second quarter bottomline was 13.1% higher from the first quarter while topline was 2.7% higher, according to Digi’s press release.

Earnings before interest, taxes, depreciation and amortisation (Ebitda) margins grew by 0.6 percentage points from the previous quarter and it grew 1.1 percentage points from the previous year’s quarter, Digi said.

The company said in a press release that its efforts to provide more value and digital experiences to customers saw a strong response, with continued growth reflected in postpaid and internet revenues, while prepaid revenue stabilised as internet adoption continues to exceed the use of legacy voice services in this segment.

“We aim to deepen our customer insight capabilities and digitalisation efforts to drive differentiated customer experiences, connecting more Malaysians with services that matter most to them. We have started executing on this strategy and remain resilient in the midst of challenging market conditions,” Digi CEO Albern Murty said.

The company said it invested RM261mil for capital expenditures or 18.6% of service revenue in the second quarter to accelerate technology capabilities that will activate growth opportunities in the next quarter.

These include IT capability improvements, network capacity and coverage upgrades, fibre network expansion, and Network Function Virtualisation deployment. Digi said its network now connects 11.4 million customers, serving populated areas across Malaysia with 4G LTE: 90%, LTE-A: 70% coverage and 9,100km of fibre network.The telco said that its net additions totaled 113,000 for the quarter.

It said growth was primarily driven by its easy device ownership programme, PhoneFreedom 365, higher demand for entry-level plans and growing subscriptions by businesses.

Its postpaid revenue grew 12.6% from the previous year to RM697mil while postpaid business revenue increased 5% year-on-year (y-o-y).

While prepaid revenue declined 13.2% y-o-y to RM751mil.

The company said its Internet revenue increased 9.2% y-o-y to RM879mil or 62.7% of service revenue.

This was contributed by a larger 9.3 million Internet customers and an 83.1% smartphone base, with average monthly data usage totalling 11.4Gb per customer, it said.

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