Digi posts RM264.8mil earnings in 1Q, declares 3.4 sen dividend

Albern Murty

KUALA LUMPUR: Digi.com Bhd, which saw its net profit fell 20.2% to RM264.82mil in the first quarter, has declared a first interim dividend of 3.4 sen per share, amounting to RM264mil.

Its revenue in the first quarter fell marginally by 0.64% to RM1.55bil in the first quarter against RM1.56bil a year ago. Its earnings per share for the quarter trimmed to 3.41 sen from 4.27 sen previously.

Digi said the effects from border closures, changes in prepaid subscribers, and revenue mix moderated service revenue performance to -3.6% y-o-y ( y-o-y). Excluding roaming, the service revenue would have declined by 2.6% y-o-y.

The company’s focus on operational efficiency resulted in Ebitda at RM737mil, or margin of 48% while operational cash flow strengthened to RM580mil.

“We saw a steady growth y-o-y from improved commercial momentum leveraging internet growth and a stronger network that has provided better capacity and consistent network experience, “ CEO Albern Murty said.

“Moving forward, we stay committed in delivering business priorities, while maintaining a balance of operational efficiencies with strategic investments in growth areas, as well as continuing our support in the society’s recovery,” he added.

Digi’s internet customer base was 8.8 million in the first quarter, with customers using 19.7GB of data monthly, driving data traffic volumes up by 28% y-o-y.

Internet and digital revenue increased to RM1bil, up 3.2% y-o-y as a result of higher data usages across segments.

Digi said its 4G LTE and LTE-A network coverage now serves 92% and 75% of the population nationwide respectively, alongside an extensive fibre network of 10,000 KM.

It has completed 104% of new 4G sites rollout under the Jalinan Digital Negara (JENDELA) plan in the quarter, and is also on track in customer and network migration efforts as part of the nation’s 3G shutdown in phases.

Digi invested a higher capex of RM157mil or 10.1% of total revenue to support network rollouts and site deployments. Its operational cash flow remained healthy at RM580mil, or margin of 37.4%.

In the first quarter, its net debt to Ebitda ratio healthy at 1.7 times while conventional debt over total assets was at 6.2%, well within the Shariah threshold.

Digi’s prepaid Arpu (average revenue per user) rose to RM33, lifting its blended Arpu to RM43.

Its postpaid subscriber base enlarged to 3.09 million users, with net adds of 46,000 q-o-q driven by new Digi Postpaid portfolio to drive focused acquisition and retention strategies.

Commenting on its outlook, Digi said: “We note on the exciting prospects of the proposed merger between Digi and Celcom to create a leading telecommunication service provider in Malaysia for accelerated digital growth and innovation.”

“In the meantime, we remain steadfast on driving business as usual for the remainder of 2021 on delivering on our priorities; built on robust financials, organisational agility, trusted brand and responsible business standards,” it said.

Digi is reaffirming FY21 guidance of low single digit decline for service revenue, medium single digit decline for Ebitda and capex-to-total revenue ratio of 14% to 15%.

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Digi , Albern Murty , merger , Celcom Digi


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