Digi rings up RM384.34m Q2 profit

KUALA LUMPUR: Digi.Com Bhd’s (Digi) net profit increased 7.1 per cent to RM384.34 million in the second quarter ended June 30, from RM358.89 million in the same period previously.

In a filing to Bursa Malaysia, Digi said the increase was due to higher service revenue and efficient cost management.

Revenue increased 4.2 per cent to RM1.62 billion in the second quarter from RM1.55 billion, anchored by postpaid revenue growth of 15.5 per cent and prepaid Internet revenue growth of 20.9 per cent.

Digi said during the quarter, the group continued to register positive take-ups for postpaid and postpaid family plans, including subscriptions for the high value plans, enabled with borderless roaming proposition from existing customers.

It said the rising demand for plan upgrades and prepaid to postpaid conversions was supported by sharper focus on base management, leveraging data insights and digitisation capabilities.

“At the same time, our entrylevel postpaid plans alongside affordable and worry-free 4G bundles continued to garner strong demand and supported Digi’s growing postpaid subscriber base,” it said.

Digi said postpaid turned in a revenue growth of 15.5 per cent year-on-year and 4.7 per cent quarter-on-quarter to reach RM619 million while postpaid Internet revenue rose 32.5 per cent year-on-year and 8.7 per cent quarter-onquarter to RM400 million.

Average revenue per user moderated to RM76 on the back of stronger postpaid subscriber base of 2.7 million, fuelled by higher entry-level postpaid subscriptions from continued momentum in prepaid to postpaid conversions, it said.

For the six months, Digi’s net profit increased 5.3 per cent to RM770.45 million from RM732 million while revenue surged four per cent to RM3.25 billion from RM3.13 billion.

Digi said with a solid first half performance, the group would step up its growth for the next six months via strong execution of strategies in focus areas for postpaid and prepaid, leveraging data driven-insights, customer segmentation and delivering on cost agenda on a platform of sustainable and efficient cost structure.

It said despite continued market challenges ahead, this year it would continue to aim towards improving service revenue growth development, sustaining earnings before interest, taxes, depreciation and amortisation margin at around 46 to 47 per cent and delivering efficient capital expenditure between 10 and 12 per cent of service revenue.

Digi’s board declared the second interim dividend of 4.9 sen, or RM381 million, for the quarter.

... our entrylevel postpaid plans alongside affordable and worry-free 4G bundles continued to garner strong demand and supported Digi’s growing postpaid subscriber base.