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Digi Q3 profit at RM313mil

PETALING JAYA: Digi.com Bhd’s net profit slipped 2.5% year-on-year (y-o-y) in the third quarter ended Sept 30, dragged down by increased depreciation and amortisation costs as well as higher net one-off effects in the previous corresponding quarter.

In a filing with Bursa Malaysia, the telecommunication company (telco) announced a net profit of RM312.82mil, as compared to RM320.76mil in the third quarter of the previous financial year.

Revenue in the quarter was flattish at RM1.58bil, even though postpaid revenue was the highest in five quarters. Postpaid revenue was up 1.1% y-o-y to RM633mil.

Prepaid revenue, on the other hand, fell by 3.4% y-o-y to RM645mil.

Overall, the telco’s service revenue was registered at RM1.34bil, weighed down by 2.3% y-o-y, following the prolonged stricter lockdown since June 2021 and the group’s strategic decision to exit from the high churn-low end of the migrant segment.

The reduction of gaming revenue from changes in reload limits had also led to lower digital revenue, stated Digi.

“In the quarter under review, Digi invested RM170mil capital expenditure (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,” it said in a statement yesterday.

Earnings per share for the third quarter ended Sept 30 was 4.02 sen. The telco proposed a dividend of four sen for the quarter.

Cumulatively, in the first nine months of financial year 2021 (FY21), Digi’s net profit fell 8.85% y-o-y to RM857.55mil.

This was because of higher depreciation and amortisation costs, increased other expenses as well as a higher finance cost and net loss on fixed assets “written-off and disposed”. Revenue for the period rose 3.5% y-o-y to RM4.75bil.

Commenting on its prospects, Digi said it will continue to strengthen its mobile offerings and digital services for subscribers to benefit from growing digital opportunities.

The telco revised its FY21 guidance to a low-single digit decline for service revenue, low-to-mid single digit decline for earnings before interest, tax, depreciation and amortisation (Ebitda) as well as a capex-to-total revenue ratio of 13% to 14%.

This is considering the operating and retail environment which is gradually returning to normal conditions.

Digi also said that the proposed merger between Celcom Axiata Bhd and Digi Telecommunications Sdn Bhd is progressing as planned. “The completion of the proposed transaction is subject to receipt of regulatory approvals, approval by all shareholders, and other customary terms and conditions. Expected dates for approval and completion of the transaction within the second quarter of 2022 remain unchanged,” it said.

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