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Digi posts 3Q net profit of RM312.8m, dividend 4 sen a share

KUALA LUMPUR: Digi.com Bhd delivered a resilient third quarter ended Sept 30, 2021 with improved net profit at RM312.81mil on a quarter-on-quarter basis.

The telco reported on Thursday, net profit improved 11.8% on-quarter from RM280mil in the second quarter.

However, revenue was slightly lower by 2.1% at RM1.584bil compared with RM1.618bil in 2Q due to lower device and other revenues.

Digi said on a year-on-year basis, 3Q net profit dipped 2.5% from RM320.76mil a year ago.

Revenue was slightly higher at RM1.584bil compared with RM1.579bil. Earnings per share were 4.02 sen compared with 4.13 sen.

“The company recorded RM1.34bil service revenue, sustained by improved momentum in postpaid and core prepaid segments.

Digi said its earnings before interest, tax, depreciation and amortisation (Ebitda) was at RM788mil or a margin of 49.7%.

As for the dividend, Digi declared a third interim tax exempt (single-tier) dividend of four sen per share for the financial year ending Dec 31,representing 100% dividend payout ratio. The ex-date is Nov 17.

In the nine months ended Sept 30, its net profit slipped to RM857.55mil from RM940.79mil in the previous corresponding period. However, its revenue was higher at RM4.75bil compared with RM4.59bil.

In 3Q, Digi invested RM170mil capex in network capacity enhancements and digitalisation of operations, as part of the company’s priority to deliver quality internet experience to its customers to meet rising data consumption.

Monthly average data usage now stands at 22.4GB per user.

To further strengthen its network, Digi delivered 100% of its targets for new 4G sites rollout and site upgrades under the Jalinan Digital Negara (JENDELA) plan in the quarter.

The process to gradually shut down 3G network is progressing well with less than 300,000 3G-only subscribers, against a growing internet subscribers base of nine million.

Digi’s 4G LTE and LTE-A network coverage now serves 92% and 75%f the population nationwide respectively, alongside an extensive fibre network of more than 10,000km.

Additionally, Digi’s network performance has been recognised by several reputable independent global observers as the best in download speed for five consecutive quarters, cementing its position as Malaysia’s fastest and most consistent network.

Digi registered postpaid revenue at RM633mil, while prepaid revenue stood at RM645mil.

Digi’s Chief Executive Officer, Albern Murty said, “We continue to invest and deliver on our network experience to better serve our customers, while sustaining efforts to drive societal recovery.

“On this front, we are pleased to report that 100% of our retail frontliners at Digi Stores are fully vaccinated against Covid-19, thus enabling us to serve customers safely while keeping our employees protected,” he said.

Highlights of Digi’s financial performance in 3Q, 2021:

• Service revenue stable at 0.2% Q-Q on higher contribution from postpaid and prepaid segments.

• Postpaid revenue grew to RM633mil, up 1.6% Q-Q, driven by demand for device bundles and entry-level plans; subscriber base at 3.25 million.

• Prepaid revenue sustained Q-Q performance of 0.3% to RM645 million, largely from data revenue to offset weaker voice and non-internet usages; subscriber base at 7.12 million.

• Total subscriber base of 10.37 million (up 148,000 Q-Q), of which 86.4% are internet subscribers.

• B2B subscribers grew 1.6% Q-Q from digital bundles push and increased adoption across the board.

• COGS reduced -15.3% Q-Q resulted from lower device and digital sales.

• Operating expenditure of RM386mil declined -3.5% Q-Q as a result of savings in sales and marketing, offsetting the

increase in staff and personnel, operations and maintenance costs as well as higher license fees.

• Sequential Ebitda and profit after tax increase of 6.1% and 11.8% from service revenue recovery and lower total costs.

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