KUALA LUMPUR: Digi.com Bhd reported improved financial results in the second quarter ended June 30, 2021 from 1Q with higher service revenue and profit after tax.
The telco, which is the first company to report the results for the quarter ended June 30, said its total revenue improved by 4.4% quarter-on-quarter (QoQ) and 11.4% year-on-year (YoY) to RM1.62bil, underpinned by better performance of mobile segment and device sales.
Its service revenue recovered by 0.2% QoQ and 1.7% YoY to RM1,340 million attributed to better data monetisation alongside favourable response from Jaringan PRIHATIN offers.
Digi reported improved prepaid revenue of 0.5% QoQ and 2.6% YoY to RM643mill on higher prepaid data revenue to offset lower non-internet usages.
Its postpaid revenue of RM623mil was supported by an enlarged subscriber base
As for device and other revenues, Digi reported a growth of 30.5% QoQ and 105.9% YoY to RM278mil on positive take-ups for mobile bundles and newly launched smartphones
Its profit after tax of RM280mil, which was an increase of 5.7% QoQ but a decline of 2.8% YoY, due to higher depreciation and amortisation costs for increased right-of-use (ROU) assets, cushioned by lower net finance costs.
Digi declared a second interim dividend of 3.6 sen a share, which is a 100% dividend payout ratio.
In the first half, its net profit fell by 12.1% to RM544.74mil from RM620.03mil in the previous corresponding period. However, its revenue increased by 5.2% to RM3.17bil from RM3.02bil.
Digi’s CEO Albern Murty said Digi remains committed to supporting the connectivity needs of society in these times, as it intensifies efforts to provide consistent network experience, deliver on JENDELA ambitions, bring to market more innovative and affordable plans to support consumers.
“At the same time, we continue to step up our vigilance on the safety and health of our employees, partners, and in particular our retail and network frontliners, to continue serving our customers safely in our stores and digital channels,” he said.
On the guidance for 2021, it reaffirmed its FY2021 guidance of low single digit decline for service revenue, medium single digit decline for EBITDA, and capex-to-total revenue ratio of 14.0% to 15.0% in line with the company’s commitment to drive better network quality.