DiGi 1Q net profit up 3.5%, declares 4.9 sen dividend
KUALA LUMPUR (April 13): DiGi.Com Bhd’s net profit for the first quarter ended March 31, 2018 (1QFY18) rose 3.5% to RM386.11 million compared to RM373.11 million in the previous year, thanks to improved service revenue, cash flow and stronger operational efficiencies.
Service revenue grew 0.7% year-on-year to RM1.48 billion, fuelled by solid internet revenue growth within the quarter from the company’s strong postpaid performance and stronger data monetisation of its prepaid business, it said.
Earnings per share rose to 4.97 sen from 4.8 sen in 1QFY17. Quarterly revenue rose 4% to RM1.63 billion versus RM1.57 billion in the previous year.
The group declared a first interim dividend of 4.9 sen per share for the financial year ending Dec 31, 2018, which will be payable on June 29.
In a statement today, DiGi said it had invested RM181 million in capital expenditure or 12.2% of service revenue to expand 4G LTE and LTE-A network footprint to 88% and 57% respectively, and over 8,200km of fiber network nationwide.
“In the quarter, DiGi grew its active internet user base to 8.6 million, of which 6.6 million are 4G LTE subscribers, driving a total of 67% 4G data traffic on its network,” it said.
It had closed the quarter with 11.8 million subscribers with average revenue per user of RM42.
“We managed to improve margins and returns, with earnings driven by the strong uptake momentum of our internet and digital services offerings across our postpaid, prepaid, enterprise and new digital businesses.
“Our sharper focus in delivering innovative range of products, services and solutions enabled us to provide better value and experience in meeting our customers’ internet needs,” DiGi chief executive officer Albern Murty said.
Moving forward, DiGi said it is committed to investing in growth opportunities and aspire to deliver efficient capital expenditure between 10% and 12% of service revenue.
At 2.51pm, DiGi shares were trading two sen lower or 0.44% at RM4.48, for a market capitalisation of RM34.83 billion.
Source: The Edge