PETALING JAYA: DiGi.Com Bhd posted net earnings of RM332 million for the first quarter ended March 31, 2.8^% lower than RM341.5 million seen in the previous corresponding quarter, after accounting for a RM306 million depreciation and amortisation cost.
Revenue, however, increased 3.43% to RM1.56 billion, from RM1.5 billion a year before.
A first interim dividend of 4.2 sen per share was declared, equivalent to RM327 million, payable to shareholders on June 26, 2020.
In its Bursa filing, the group noted that mobile service revenue declined 0.4% year-on-year (yoy) mainly attributed to decline from traditional voice and roaming revenues due to stricter travel advisory amid Covid-19 outbreak, alongside impact from lower interconnect rates.
On the other hand, 70% of service revenue comprised of internet and digital revenue accelerated 13.3% yoy, supported by 9.2 million internet subscribers, strong demand for gaming activities and encouraging upsell transactions on MyDigi of 21.4 million.
Blended average revenue per user (ARPU) grew to RM40 as compared to last year’s achievement, due to disciplined focus on building quality revenue generating subscriber mix demonstrated by a 7.2% YoY increase in postpaid subscriptions.
Postpaid and prepaid ARPU stood at RM69 and RM30, respectively for the quarter.
Opex for the quarter stood at RM411 million, a flat increase of 0.5% yoy, or 29.6% of service revenue yielded by strategic implementation of operational efficiency programmes in 2019. Capital expendiure was RM139 million, as a flow through from network rollouts acceleration in 4Q19, mainly for capacity upgrades and fiber network expansion as well as traffic management
“Digi continued to demonstrate lean and efficient cost structure while investing into capacity upgrades and digital capabilities to support our customers’ growing data demand,” the group said.
Looking ahead, Digi said due to the uncertainty related to the duration and severity of the Covid-19 pandemic, it is taking a practical view on its earnings parameters for the remainder of 2020.
“In the months ahead in 2020, we will prioritise on continuing to create value for our stakeholders, protecting cash flow through cost measures and financial flexibility, investing in strengthening network and IT infrastructure to support growing data demand, and delivering on core and digital business through focused customer offerings,” it said.
