by NUR HAZIQAH A MALEK / pic by TMR FILE
DIGI.COM BHD net profit fell 20.23% to RM264.83 million in the first quarter of 2021, while revenue fell marginally to RM1.55bil in the first quarter against RM1.56bil a year ago.
In a filing to Bursa Malaysia the company noted its earnings per share for the quarter fell to 3.41 sen from 4.27 sen posted previously.
The telco said the impact from border closures, changes in prepaid subscribers, and revenue mix moderated service revenue performance to -3.6% y-o-y ( y-o-y).
Excluding roaming, the service revenue would have declined by 2.6% y-o-y.
“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,”said Digi.com CEO Albern Murty in a separate statement.
In a filing with Bursa Malaysia, the telecommunications provider said its internet subscribers and business-to-business revenues have strengthened, with an improved commercial momentum with its new postpaid portfolio driving up subscriber base to pre-pandemic levels.
The company noted that its internet customer base was at 8.8 million with customers using 19.7GB of data monthly which drives data traffic volumes up by 28% YoY.
“Internet and digital revenue increased to RM1.01 billion, which increased 3.2% YoY as a result of higher data usages across segments.
“Digital engagements were robust underpinned by 13.8 million upsell transactions volume on MyDigi, now surpassing 4.48 million monthly active users,” it said.
In addition, the company is gaining its market share in the B2B segment based on its higher subscriber base of 7% YoY and increased revenue excluding roaming of 3.3% YoY driven by strong take-ups in Go Digital and Penjana bundles.
“Digi’s 4G Long Term Evolution (LTE) and LTE-Advanced network coverage now serves 92% and 75% of the population nationwide respectively, alongside an extensive fibre network of 10,000 KM.
“The company completed 104% of new 4G sites rollout under the Jalinan Digital Negara (JENDELA) plan in the quarter, and is also on track in customer and network migration efforts as part of the nation’s 3G shutdown in phases,” it said.
Aside from the increase in subscriber base, the company also noted that its operational expenditure of RM404 million has reduced 1.7% YoY on the back of efficient credit management and continued network investments and increased on-ground activities.
Moving forward, the company sees the challenging operating environment to continue as uncertainties from the pandemic persists.
“Digi is reiterating guidance amid rising Covid-19 cases and ongoing movement restrictions in certain states and districts.
“Digi is committed to maintaining business as usual until the completion of the proposed merger of Celcom Digi Bhd, whilst remaining focused on delivering 2021 priorities to achieve our strategic ambitions,” it said.
For the year 2021, the company expects its service revenue to see a low single-digit decline, and EBITDA with medium single-digit decline while its CAPEX-to-total revenue ratio will be between 14% to 15%.