Digi posts net profit of RM304.55mil in 4Q, div of 3.9c/share

KUALA LUMPUR: Digi.com Bhd posted a net profit of RM304.55mil in the fourth quarter of its financial year ended Dec 31, 2021, up 8.7% from RM280.18mil in the year-ago quarter due to operational efficiencies and a positive outcome from long-standing tax claims.

The group reported revenue of RM1.58bil in the quarter, which was slightly improved over RM1.56bil in the previous corresponding quarter.

Over the entire financial year, Digi's net profit came to RM1.16bil, or 4.82% lower than RM1.22bil in the previous year.

Revenue in FY21 rose 3% year-on-year (y-o-y) to RM6.34bil. Service revenue for the year stood at RM5.34mil, which was 1.6% lower y-o-y in line with its financial guidance.

The board of directors declared a fourth interim dividend of 3.9 sen, bringing total 2021 dividend to 14.9 sen or nearly 100% of the payout ratio.

“We delivered our 2021 priorities amid the current business environment, by emphasising improved network and digital experiences for our customers and driving efficiencies across the operations.

"We also remain committed in supporting pandemic and flood relief efforts through various community-focused initiatives and relief aid, and in keeping our customers connected,” said Digi CEO Albern Murty in a statement.

Over the quarter, the telco reported that core average revenue per user (Arpu) remained resilient to reduce blended Arpu by RM1 to RM42.

Postpaid revenue was up 1.6% y-o-y while prepaid revenue dropped 2.6% y-o-y due to churn from low quality segments and impact from the migration of the billing platform.

Digi's total subscriber base stood at 10.3 million, with postpaid subscription rising 253,000 to 3.3 million.

The telco's prepaid Malaysian subscription was also on an uptrend, rising 10.5% y-o-y and 0.4% quarter-on-quarter through targeted offerings and lowering the churn rate.

In the business (B2B) segment, the subscriber base expanded 9.8% from supporting SME and large enterprise customers with digitalisation solutions.

Meanwhie, Internet subscribers grew to over nine million while the smartphone penetration rate rose to 92%.

The monthly average data usager per user grew 8.9% year-on-year to 29.7GB.

Moving forward, Digi forecasts a return to growth underpinned by momentum in the postpaid, B2B and fibre segments.

It said Ebitda is expected to be around FY21 levels driven by ongoing operational efficiency discipline while capex-to-total revenue ratio is also expected to be at FY21 levels with a prioritised focus on enhancing network and digital capabilities
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Digi.com , telco , Albern Murty


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