Digi’s Q3 net profit falls 9.3%

PETALING JAYA: Digi.com Bhd reported a 9.3% decline in net profit to RM356.05 million for its third quarter ended Sept 30, 2019 compared to RM392.54 million reported in the same period of the previous year, after accounting for a RM202 million depreciation cost and a RM26 million finance cost.

Revenue slid 2.3% to RM1.56 billion from RM1.6 billion reported previously.

It expects to continue to execute and deliver on its growth strategies, especially in driving postpaid, B2B and prepaid internet growth in the last quarter of the year.

“We will continue to sharpen our focus on structural operational efficiencies, investing in what matters most for our customers and continuously drive value creation for our stakeholders,” Digi said.

For its postpaid segment, Digi saw revenue grow by 12% year-on-year in the third quarter to RM717 million from RM640 million.

Meanwhile, its postpaid subscriber base increased by 67,000 in the period to hit 2.99 million subscribers and average revenue per user (ARPU) for the segment stood at RM71.

The group’s prepaid business saw a 11.4% yoy drop during the quarter to RM740 million from RM835 million, while subscriber base for the segment fell by 736,000 and ARPU stood RM29.

For a nine-month period ended Sept 30, 2019 the group reported a net profit of RM1.09 billion, a 6.3% drop from RM1.16 billion reported for the same period last year.

Cumulative revenue also fell by 4.8% to RM4.62 billion from RM4.85 billion reported, previously.

The group declared a third interim dividend of 4.5 sen per share equivalent to RM350 million, payable to shareholders on Dec 19, 2019.

Digi CEO Albern Murty said it has stayed focused on delivering its strategy this quarter, and see that its efforts connect more Malaysians on its services.

“We will be persistent in providing affordable, widespread connectivity to more people and businesses while we run our business efficiently. Staying focused on introducing innovative products to market and making inroads into the B2B segment as part of our long-term growth.”

source https://www.thesundaily.my/business/digi-s-q3-net-profit-falls-9-3-ID1498965