Digi Q1 net profit eases to RM332 mln

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KUALA LUMPUR, April 23  – Digi or Digi.com posted a lower net profit of RM332 million in the first quarter ended March 31, 2020 (Q1 2020) from RM341.50 million in the same period previously.

Revenue, however, rose to RM1.56 billion from RM1.51 billion previously buoyed by a 13.3 per cent year-on-year (y-o-y) internet and digital revenue growth to RM977 million in Q1 2020, it said in a filing with Bursa Malaysia today.

The telecommunications service provider said mobile service revenue contracted 0.4 per cent y-o-y to RM1.38 billion, mainly attributed to the decline from traditional voice and roaming revenues due to stricter travel advisory amid COVID-19 outbreak, alongside impact from lower interconnect rates.

“Excluding interconnect revenues of RM21 million, underlying service revenue improved 0.7 per cent y-o-y,” it said.

It said internet and digital revenue, which made up 70 per cent of service revenue, accelerated 13.3 per cent y-o-y supported by 9.2 million internet subscribers, strong demand for gaming activities and encouraging upsell transactions on MyDigi amounting to 21.4 million.

Digi said postpaid and prepaid average revenue per user (ARPU) stood at RM69 and RM30, respectively for the quarter under review.

“Opex for Q1 2020 sustained at RM411 million on the back of continued network investments, alongside a disciplined focus on efficient operations,” it said.

It added that the board of directors had declared a first interim dividend of 4.2 sen per share, equivalent to RM327 million, payable on June 26, 2020.

On prospects, Digi said given the evolving COVID-19 situation and the pandemic’s uncertain effect on the country’s economic outlook, the company would prioritise several issues in the months ahead in 2020 including protecting cash flow through cost measures and financial flexibility, and investing in strengthening network and information technology infrastructure to support growing data demand.

At 3.30 pm, Digi’s share added one sen to RM4.50 from RM4.49 yesterday, with 1.62 million shares transacted.

– BERNAMA