Digi posts slightly lower net profit of RM341.5 million for 1Q19

KUALA LUMPUR: Digi.com Bhd posted a slightly lower net profit of RM341.5 million in the first quarter ended March 31, 2019 (1Q19), compared with RM386.1 million chalked up in the same quarter last year.

Revenue slipped to RM 1.51 billion during the quarter under review from RM1.63 billion previously, the telecommunications operator said in its filing to Bursa Malaysia today.

Service revenue eased 2.8 per cent year-on-year (y-o-y) to RM1.44 billion while operating cash flow was 6.6 per cent lower y-o-y at RM555 million.

Postpaid revenue grew 13.5 y-o-y to RM671 million in 1Q19 driven by highly focused acquisition and retention strategies, while postpaid internet revenue rose 25.3 per cent y-o-y to RM461 million.

In a separate statement, Digi chief executive officer Albern Murty said the telco has strategically shifted its prepaid subscriber and revenue mix to reduce dependency on legacy voice revenues and to drive healthy growth in internet subscribers and usage.

He said the internet customer base stood healthy at 9.0 million during 1Q19, with customers using 10.2GB of data monthly which drove data traffic volumes up by 51 per cent y-o-y. I

Internet revenue increased 13.3 per cent y-o-y to RM862 million as an effect of higher data usage across segments, 81.4 per cent smartphone base and 21.0 million upsell transactions on MyDigi, he said.

“Despite market competition, we are positioning Digi for long-term growth by improving prepaid sustainability, driving further postpaid growth, investing in our network, and creating digital platforms to add value for customers while executing a disciplined strategy focused on growth, efficiency and digital transformation,” he added.

Digi declared a first interim dividend of 4.3 sen per share equivalent to RM334 million, payable to shareholders on June 28, 2019.