Digi posts RM320.7mil profit in third quarter


  • Telcos
  • Saturday, 17 Oct 2020

CEO Albern Murty (pic) said: “Digi navigated well through a difficult time to deliver a better quarter, driven by our resilience to improve business opportunities as we supported our customers.”

KUALA LUMPUR: Digi.com Bhd posted a net profit of RM320.76mil in the third quarter (Q3) ended Sept 30, an improvement in its quarterly performance.

It has declared a dividend of 4.1 sen a share.

The telco announced that its third-quarter net profit was up by 11.5% from the second quarter’s RM288mil. Compared to a year ago, it was a drop of 9.91% from RM356.05mil.

In a Bursa Malaysia filing, the telco said its priorities during this challenging period were to secure a consistent network quality, support essential services and nationwide digital adoption.

Its recovering commercial momentum and business continuity were achieved by proactively responding to customers’ demands in the new era brought about by the Covid-19 pandemic, the filing said.

CEO Albern Murty (pic) said: “Digi navigated well through a difficult time to deliver a better quarter, driven by our resilience to improve business opportunities as we supported our customers.”

Murty said the company expanded its range of value-driven offerings across its core product portfolios, launched fibre broadband nationwide to serve more households with total connectivity and modernised its distribution and network capabilities.

It will remain focused on financial resilience by prioritising investments in strategic areas, he said.

Digi recorded a 4.3% quarter-on-quarter (q-o-q) service revenue growth to RM1.37bil. This was fuelled by a 5.4% increase in internet and digital revenue. This was attributed to an increased uptake of relevant digital services and improved data monetisation opportunities, the telco said in a statement.

“Digi’s 4G LTE and LTE-A network now covers 91% and 74% of the population respectively, together with a fibre network that stretches 9,850km.

“These enhancements were crucial to support the 26.1% year-on-year (y-o-y) surge in total data traffic and 17.4GB of monthly data usage per user from 12.9GB a year ago, ” it said

Its revenue rose by 1.1% to RM1.58bil from RM1.56bil a year ago. Earnings per share was at 4.13 sen compared with 4.58 sen a year ago. Operating cashflow also strengthened 19.6% q-o-q to RM652mil.

In Q3, Digi invested RM134mil in capex for network enhancements to maintain service quality and availability nationwide. An additional 44% new and upgraded sites were deployed in the January-September period versus a year ago.

On the dividend, it said the 4.1 sen a share was the third interim tax exempt (single-tier) dividend (Q3 of 2019: 4.5 sen per ordinary share) for the financial year ending Dec 31,2020. The 4.1 sen a share is equivalent to RM319mil, which will be paid on Dec 17. The entitlement date is Nov 18.

In the nine months, its net profit declined by 13.6% to RM940.79mil from RM1.09bil in the previous corresponding period. Its revenue slipped to RM4.59bil from RM4.62bil.

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