Digi post lower net profit of RM264.83 mln for Q121

23 Apr 2021 / 15:02 H.

KUALA LUMPUR: Digi.Com Bhd’s net profit for the first quarter ended March 31, 2021 (Q121) fell 20.2 per cent to RM264.83 million from RM332.0 million in the same quarter last year.

Revenue declined to RM1.55 billion from RM1.56 billion a year ago, moderated by 0.6 per cent on the effects of border closures, changes in prepaid subscribers and revenue mix.

In a statement today, Digi said the lower profit was largely due to a fair value loss in relation to interest rate swap contracts of RM22 million as compared to a fair value gain of RM37milion in the same period last year, given the substantially low projected interest rates at the onset of the pandemic.

Chief executive officer Albern Murty said the company saw a steady growth year-on-year (yoy) from improved commercial momentum leveraging internet growth and a stronger network that has provided better capacity and consistent network experience.

“Moving forward, we stay committed in delivering business priorities, while maintaining a balance of operational efficiencies with strategic investments in growth areas, as well as continuing our support in the society’s recovery,” he said.

Overall, Digi said its business performance reflected a positive start of the year with an internet customer base of 8.8 million and customers using 19.7GB of data monthly, driving data traffic volumes up by 28 per cent y-o-y.

Its internet and digital revenue increased to RM1.01 billion or 3.2 per cent y-o-y as a result of higher data usages across segments.

Both prepaid and postpaid revenue sustained quarter-on-quarter (qoq) momentum (-0.3 per cent q-o-q each) from continued good commercial momentum while customer spend optimisation affected y-o-y development.

Device and other revenues improved 23.1 per cent y-o-y from encouraging take-ups for value accretive PhoneFreedom 365 plans and operation expenditure of RM404 million was lesser by 1.7 per cent y-o-y on the back of efficient credit management alongside continued network investments and increased on-ground activities.

Looking at uncertainties arising from the pandemic, Digi expects the challenging operating environment to continue and is reiterating guidance amid rising COVID-19 cases and ongoing movement restrictions in certain states and districts.

The guidance includes a single digit decline for service revenue, a medium single digit decline for earnings before interest, taxes, depreciation, and amortisation (EBITDA) and capital expenditure (capex)-to-total revenue ratio of 14 to 15.0 per cent.

“Digi is committed in maintaining business as usual until the completion of the proposed merger of Celcom Digi Bhd, while remaining focused on delivering 2021 priorities to achieve our strategic ambitions,” it added. - Bernama

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