Digi 4Q net profit falls 9% to US$84.2m

  • FY19 net profit fell to US$351 million from US$378.1 million
  • For 4Q19, Digi proposed a dividend of 1.08 cents a share


(From left) Deputy Minister of Communications and Multimedia Eddin Syazlee Shith; Deputy Minister of Health Dr Lee Boon Chye; MCMC chairman Al-Ishsal Ishak; Minister of Communications and Multimedia Gobind Singh Deo; Adun, Kuah, Langkawi Mohd Firdaus Ahmad; Prime Minister of Malaysia Dr Mahathir Mohamad; Chief Minister of Kedah Mukhriz Mahathir; Hospital Sultanah Maliha head of Emergency and Trauma Department & emergency physician Dr Roshidah Rosman; Digi CEO Albern Murty; CREST CEO Jaffri Ibrahim; and ZTE CEO Steven Ge pilot the first 5G connected ambulance in Malaysia to enable real-time medical data transfers between paramedics and the Hospital Sultanah Maliha in Langkawi

DIGI.Com Bhd reported on Jan 22, a 9.23% drop in the fourth quarter ended Dec 31, 2019 (4Q19) net profit to US$84.2 million (RM342.92 million) from US$92.75 million (RM377.8 million) a year earlier as the telco contended with a drop in prepaid revenue while postpaid income grew.

In a statement to Bursa Malaysia, Digi said the group's total revenue rose to US$412 million (RM1.68 billion) from US$410 million (RM1.67 billion) a year ago. Postpaid revenue grew 9.6% year-on-year (y-o-y) to US$179.5 million (RM731 million) while prepaid revenue declined 9.7% y-o-y to US$180.7 million (RM736 million).

Digi said prepaid revenue dropped "amid impact from lower interconnect rates, moderating non-Internet prepaid services and continued postpaid conversions".

For the full year, Digi said FY19 net profit fell to US$351.1 million (RM1.43 billion) from US$378.1 million (RM1.54 billion) a year earlier while revenue was down at (US$1.5 billion) RM6.3 billion from US$1.6 billion) RM6.53 billion.

For 4QFY19, Digi proposed a dividend of 1.08 cents (4.4 sen) a share, which brings full-year dividends to 4.47 cents (18.2 sen) a share.

[US$1 = RM4.07318]

Digi’s FY19 service revenue stood at RM5.84 billion with a healthy Ebitda of RM2.92 billion or 46.3% margin.   

In the year, Digi invested a total RM753 million capex for IT and network upgrades, innovated new services, matured its device financing programme and continued to transform its digital and physical channels.

The combined effort to improve overall customer experience further shifted its revenue mix from voice to internet and digital services, building a more sustainable runway for growth, profitability and healthy shareholder returns for the long-term.

Internet and digital revenue grew 9.9% y-o-y to RM933 million or 64.9% of service revenue. Now with 9.4 million subscribers, each using 13.8 GB of data monthly.

Ops cash flow moderated to RM512 million or 31% margin after investing another RM205 million capex, as planned, for network enhancements to unlock future growth opportunities

Final dividend per share of 4.4 sen or RM342 million, payable to shareholders on 27 March 2020. FY2019 cumulative dividend per share stands at 18.2 sen

MyDigi app now serves 3.8 million active users, with 21 million upsell transactions on the app in the final quarter of 2019. Introduced MyDigi subscriptions by EasyAdd, offerring the convenience of subscribing and managing multiple subscription services from a single hub.

Partnered with MDEC to ensure more entrepreneurs, startups and developers obtain access to perform trials on next-generation 5G technology at Malaysia’s first 5G OpenLab in Cyberjaya. Partnered with Telekom Malaysia (TM) to test the capabilities, possibilities and limitations of 5G network sharing between multiple network service operators during the 5GDP in Langkawi.

Exploring 5G technology and benefits with a Virtual Tourism use case at Langkawi Aiport and Real-time medical data transfer use case in Hospital Sultanah Maliha in Langkawi for the 5GDP.


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