皇冠登1登2登3:Digi 3Q net profit at RM264.5mil
PETALING JAYA: Digi.com Bhd says it will remain disciplined in cost management, while continuing to invest in strategic growth areas, network improvements and the modernisation agenda as macroeconomic uncertainties such as risks of a global recession weigh on the market.
In the third quarter ended Sept 30, 2022 (3Q22), the telco posted a net profit of RM264.48mil, down 15.45% from RM312.81mil in the same quarter a year earlier.
Its revenue declined 3.3% to RM1.53bil from RM1.58bil a year prior, while earnings per share fell to 3.4 sen against 4.02 sen previously.
Digi has declared a third interim dividend of 3.4 sen per share, amounting to RM264mil of dividend payout.
In a statement, Digi said consumer demand for data continued to surge, as evidenced by the company’s data traffic growth of 6.2% year-on-year (y-o-y), with monthly average data per user reaching 23GB.
“To support the demand for high-speed Internet connectivity, a total of RM173mil capital expenditure (capex), or a capex-to-total-revenue ratio of 11.3%, was invested in the quarter under review to further improve its network quality and coverage,” it added.
Digi’s average download speeds surpassed 45Mbps from 44.1Mbps in the last quarter, while its 4G long-term evolution (LTE) and LTE-A network coverage now served 95% and 80% of populated areas nationwide, respectively, alongside an extensive fibre network of 10,372kms across the nation.,
Postpaid subscribers grew for the eighth consecutive quarter, with 164,000 y-o-y net additions to a total of 3.4 million subscribers.
Its prepaid base also strengthened, with 177,000 y-o-y net additions to 7.3 million subscribers, attributed to the encouraging recovery of the migrant base combined with continued good growth within the Malaysian segment.
Blended average revenue per user (Arpu) declined RM2.5 y-o-y to RM40, mainly due to the impact of lower prepaid Arpu as the Jaringan Prihatin programme ended.
Digi’s strategy in growing its fibre segment through targeted bundling offers yielded additional 17,600 y-o-y subscribers, with a RM22 y-o-y uplift in Arpu to RM130.
Digi Business also sustained its strong growth momentum with an 18.1% y-o-y increase in subscriber base.
Revenue, meanwhile, lifted 12.4% y-o-y, from reflecting the company’s commitment in helping small and medium enterprises to digitalise and supporting large enterprises’ need for advanced digital and connectivity solutions.
Acting chief executive officer and chief marketing officer Praveen Rajan said the group had continued demand for mobile services across all segments.
“Discussions related to 5G access agreements with relevant parties are progressing well, and we’re also looking forward to completing the proposed Celcom-Digi merger this year,” he said.,