By AZALEA AZUAR / Pic by TMR FILEPIX
Digi.Com Bhd posted a net profit of RM280.18 million in the fourth quarter ended Dec 31, 2020 (4QFY20), an 18.3% drop from RM342.92 million a year ago as the group’s service revenue continued to be impacted by weak consumer and business spend amid the Conditional Movement Control Order (CMCO).
In a statement, the telco said its revenue for the quarter fell 7.14% RM1.56 billion compared to RM1.68 billion recorded a year ago that compressed its earnings per share to 3.6 sen compared with 4.41 sen per share previously.
The telco also declared a fourth interim dividend of 3.6 sen per share for FY20, which will be paid on March 26, 2021. In the same period in the previous year, it declared a dividend of 4.4 sen.
Digi’s 4G LTE and LTE-A network coverage grew to 92% and 75% of the population nationwide respectively, alongside 9,981km of extensive fibre network with its investment of RM773 million CAPEX in FY2020. This aims to drive customer value and better network experience.
The company has increased its CAPEX to RM275 million in its fourth quarter ended Dec 31, 2020 (4Q20) to deliver the fastest and most consistent network, driving customer engagements via digital channels, and curating relevant and best-in-value product offerings.
These efforts have contributed to the net growth of postpaid and business subscribers.
As a continued effect of the Conditional Movement Control Order (CMCO), the total data traffic grew 8.2% quarter-on-quarter (QoQ) and 28.2% YoY.
Internet users of 8.7 million which is equivalent to 87.3% of penetration rate led by strong internet adoption.
Business-to-business customers increased by 1.8% QoQ and 5.5%Y0Y supported by the group’s flexible and affordable digital bundle plans.
Its monthly active users for MyDigi application rose to 4.4 million due to improved features and personalised rewards.
With the help of strategic channel transformation to online platforms, the opex has been reduced by -4.0% QoQ and -2.8% YoY.
In December 2020, the group has successfully achieved a sukuk rating of AAA/Stable/P1 by RAM Rating while its final interim dividend of 3.6 sen per share equivalent to RM280 million
“Digi rallied against a challenging and uncertain market throughout 2020, driven by efficient operations and transformation initiatives. In the months ahead, we will maintain a sharp focus on accelerating our digital agenda and modernising our network and information technology (IT) infrastructure to enhance customer experience, as well as supporting the society’s recovery in this current climate,” said Digi CEO Albern Murty.
Digi remains focused on its long-term strategic goals which are set on solid fundamentals of robust financials, organisational agility and its trusted and responsible brand despite challenging market conditions.
This year, the mobile service provider would accelerate the growth in both core and digital businesses to re-capture the need for connectivity across prepaid, postpaid and fiber to the home (FTTH) segments, invest in network and IT infrastructure modernisation to enhance customer experience, drive financial sustainability through structural efficiency initiatives and cost containment efforts and commit to the highest standards of responsible business.