Digi.Com Q4 net profit marginally lower

PETALING JAYA: Digi.Com Bhd saw fourth quarter net profit for the quarter ended Dec 31, 2017 come in marginally lower at RM360.1 million due to slightly lower service revenue, an almost doubling of finance costs from adverse fair value changes of interest rate swaps of RM25 million and settlement costs and exit of RM6 million for the termination of IT infrastructure with Telenor companies.
For the fourth quarter ended Dec 31, 2016, the group made a net profit of RM374.6 million.
This was on revenue of RM1.6 billion for the quarter under review, compared with RM1.7 billion for the same quarter in 2016.
Digi.com has announced an interim dividend of 4.6 sen for the quarter, bringing total dividend payout to 18.99 sen for the year, compared with 21 sen in 2016.
Net profit for the 12-month period was 9.5% lower at RM1.5 billion, compared with RM1.6 billion for the same period in 2016.
This was on RM6.3 billion revenue, compared with RM6.6 billion registered in 2016.
Service revenue for the financial year ended Dec 31, 2017 summed up to RM5.91 billion, a decline of 5% mainly due to lower revenues from prepaid legacy services.
Digi Telecommunications Sdn Bhd termination and exit of an agreement for information technology services with Telenor IT Asia Sdn Bhd and Telenor Global Shared Services AS, was settled with RM13.8 million, of which RM7.8 million was satisfied via a transfer of assets.
The group’s share price was up three sen to close at RM4.92 with some 3.2 million shares changing hands.