Digi’s Q3 2022 performs well bolstered by strengthened network
By Digital News Asia October 21, 2022
- Data traffic grew by 6.2% y-o-y; monthly average data per user at 23.0GB
- Postpaid subscribers grew, prepaid base strengthened
Digi.com Berhad (Digi) has announced its FY2022 third quarter results, highlighting steady growth across the company’s postpaid, prepaid, fibre, and business segments, driven by its high-speed internet value offerings delivered on its strengthened mobile network.
In a statement, the telco said consumers’ demand for data continued to surge, as evidenced by the company’s data traffic growth of 6.2% year-over-year (Y-Y), with monthly average data per user reaching 23.0GB.
It said to support demand for high-speed internet connectivity, a total of US$36.5 million (RM173 million) capex, or capex-to-total-revenue ratio of 11.3%, was invested in the quarter under review to further improve its network quality and coverage.
Digi said its average download speeds surpassed 45.0Mbps from 44.1Mbps in the last quarter, while its 4G LTE and LTE-A network coverage now serves 95% and 80% of populated areas nationwide respectively, alongside an extensive fibre network of 10,372KM across the nation.
It said its focus on delivering quality internet experience through attractive best-in-value plans to its customers saw continued improvements in its subscriber base.
Postpaid subscribers grew for the eight consecutive quarter, with more than 164K (Y-Y) net additions to a total of 3.4 million subscribers while its prepaid base also strengthened, with more than 177K (Y-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.
However, blended average revenue per user (ARPU) declined RM2.5 (Y-Y) to US$8.50 (RM40), mainly due to impact from lower prepaid ARPU as the Jaringan Prihatin programme ended, it said.
It added that its strategy in growing its fibre segment through targeted bundling offers yielded additional 17.6K (Y-Y) subscribers, with RM22 (Y-Y) uplift in ARPU to US$27 (RM130).
Meanwhile, Digi Business also sustained its strong growth momentum with 18.1% (Y-Y) increase in its subscriber base while revenue lifted 12.4% (Y-Y), from reflecting the company’s commitment in helping SME digitalise and supporting large enterprises’ needs for advanced digital and connectivity solutions.
Digi’s Acting chief executive officer and chief marketing officer, Praveen Rajan said the company sees continued demand for mobile services across all segments.
“Looking ahead, with macro-economic uncertainties such as risks of a global recession weighing on the market, we will remain disciplined in cost management, while continuing to invest in strategic growth areas, network improvements, and modernisation agenda.”
‘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,” said Praveen.
According to Digi, its service revenue remained resilient with a marginal 0.5% quarter-over-quarter (Q-Q) drop to US$278,900 (RM1,319 million) in the third quarter of 2022, despite impact from adverse macro pressures and the end of the Jaringan Prihatin programme.
It said EBITDA stood at US$158 million (RM749 million), up 0.9% (Q-Q) with a healthy 48.9% margin, attributed to resilient topline development, modernisation initiatives, and efficient cost management.
Other financial highlights for Q3 FY2022 include:
- Postpaid and Fibre revenue lifted 1.6% (Q-Q) and 28.6% (Q-Q) respectively, on healthy consumer demand for smart bundles anchored on high-speed internet proposition, and continued B2B growth;
- Prepaid softened 2.3% (Q-Q), as steady recovery in the migrant segment and good reception of Digi’s new unlimited product cushioned the negative ARPU impact from the ending of Jaringan Prihatin programme;
- Increased demands for high-end smartphone models led to healthy device revenue of US$40 million (RM189 million), sustaining postpaid growth;
- Total mobile subscriber base grew 206K (Q-Q) to 10.7 million from healthy growth in all segments, with postpaid and prepaid subscribers growing 39K and 167K, respectively; and
- Fibre subscribers grew 4.6K Q-Q to 25.4K.
More on Digi’s Q3 2022 performance is available here.
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