Digi FY20 net profit at RM1.22bil, dividend 3.6 sen


For FY2021, Digi is accelerating growth in core and digital businesses to re-capture the need for connectivity across prepaid, postpaid and fibre-to-the-home segments.

KUALA LUMPUR: Digi.com Bhd posted net profit of RM1.22bil in the financial year ended Dec 31,2020, down 14.8% from RM1.43bil a year ago during a challenging and uncertain market due to the Covid-19 pandemic.

In a statement on Wednesday, it said revenue declined by 2.7% to RM6.15bil from RM6.29bil a year ago.

The board of directors declared a fourth interim tax exempt (single-tier) dividend of 3.6 sen per ordinary share (4Q 2019: 4.4 sen) for FY20, which will be paid on March 26. The entitlement date is on March 1.

“A strong uptake in digital services and overall improved data usage resulted in a 9.9% Y-Y growth in internet and digital revenue for FY2020. Disciplined operational efficiency initiatives yielded operational expenditure (opex) savings of -1.4% Y-Y, and Ebitda of RM3.08bil, in line with 2020 revised guidance, ” it said.

Digi invested RM773mil capex in FY2020. As a result, its robust 4G LTE and LTE-A network coverage grew to 92% and 75% of the population nationwide respectively, alongside 9,981km of extensive fibre network.

Digi’s CEO Albern Murty (above) said: “Digi rallied against a challenging and uncertain market throughout 2020, driven by efficient operations and transformation initiatives.

“In the months ahead, we will maintain a sharp focus on accelerating our digital agenda and modernising our network and IT infrastructure to enhance customer experience, as well as supporting the society’s recovery in this current climate.”

Digi said throughout the year, it maintained its strong support to aid the nation’s Covid-19 recovery through the provision of free 1GB data daily for productivity and education, access to PENJANA digitalisation grants for SMEs, and various Yellow Heart community initiatives to support critical humanitarian and emergency relief efforts.

On the fourth quarter financial performance, Digi said its net profit declined by 18.3% to RM280.18mil from RM342.92mil a year ago. Its revenue fell by 6.6% to RM1.56bil from RM1.67bil. Earnings per share were 3.6 sen compared with 4.41 sen.

It said service revenue was reduced by 1.7% quarter-on-quarter (QoQ) on the back of weakened consumer and business spend due to ongoing Conditional Movement Control Order (CMCO) in certain states since October 2020.

“Nevertheless, internet and digital revenue climbed to its highest in the last eight quarters to RM1.01bil, underpinned by our focus to strengthen sustainable revenue portfolio. The final quarter manifested our nimble execution on accelerating growth efforts, enhancing nationwide connectivity and protecting shareholder values, ” it said.

Elaborating on the 4Q results, it said total revenue reduced by -1.1% QoQ and -7% year-on-year (YoY) to RM1.56bil despite growth in internet and digital contribution.

Total cost improvement of -0.7% QoQ and -8.2% YoY led by stringent cost saving initiatives.

Total data traffic grew 8.2% QoQ and 28.2% on-year as a continued effect of CMCO. Its Internet users of 8.7 million, equivalent to 87.3% of penetration rate led by strong internet adoption

In 4Q 2020, the company increased capex to RM275mil, catered to delivering fastest and most consistent network, driving customer engagements via digital channels, and curating relevant and best-in-value product offerings. These efforts contributed to the net growth of Postpaid and Business subscribers.

While the market conditions continue to be challenging, Digi remain focused on its long-term strategic goals, set on solid fundamentals of robust financials, organisational agility and its trusted and responsible brand.

On the outlook, Digi said it will prioritise on:

• Accelerating growth in core and digital businesses to re-capture the need for connectivity across prepaid, postpaid and fibre-to-the-home segments;

• Investing in network and IT infrastructure modernisation to enhance customer experience;

• Driving financial sustainability via structural efficiency initiatives and cost containment efforts; and

• Committing to the highest standards of responsible business.

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 18
Cxense type: free
User access status: 3

Digi , digital services , data usage , Albern Murty

   

Did you find this article insightful?

Yes
No

100% readers found this article insightful

Next In Business News

Bursa Securities strikes off dealer's rep from register for misconduct
Malaysia Airlines set for recovery, post-pandemic, Khazanah says
Khazanah MD: Valid for govt to seek higher dividends during trying times
CPO futures close higher, boost from soybean
Maybank appoints Shahril chief sustainability officer
Khazanah's holding in Malaysia Airlines diluted by debt restructuring
Singapore's GIC cashes in on Taiwan stock boom -sources
Fall in glove stocks offsets banks' rally
Norway's Seadrill writes down US$2.9bil on its oil rigs
TM ONE introduces new brand strategy and enhanced website

Stories You'll Enjoy


Vouchers