DIGI.COM Bhd posted a lower net profit of RM332 mil in the first quarter ended March 31, 2020 (1Q20) from RM341.50 mil in the same period previously.
Revenue, however, rose to RM1.56 bil from RM1.51 bil, buoyed by a 13.3% year-on-year (yoy) internet and digital revenue growth to RM977 mil in the first quarter, it said in a filing with Bursa Malaysia today.
The telecommunications service provider said mobile service revenue contracted 0.4% yoy to RM1.38 bil, mainly attributed to the decline in traditional voice and roaming revenues due to stricter travel advisory amid the Covid-19 outbreak, alongside impact from lower interconnect rates.
“Excluding interconnect revenues of RM21 mil, underlying service revenue improved 0.7% yoy,” it said.
Digi said internet and digital revenue, which made up 70% of service revenue, accelerated 13.3% yoy supported by 9.2 million internet subscribers, strong demand for gaming activities and encouraging upsell transactions on MyDigi amounting to 21.4 million.
It said postpaid and prepaid average revenue per user (ARPU) stood at RM69 and RM30, respectively for the quarter under review.
“Opex for 1Q20 sustained at RM411 mil on the back of continued network investments, alongside a disciplined focus on efficient operations,” it said.
It added that the board of directors had declared a first interim dividend of 4.2 sen per share, equivalent to RM327 mil, payable on June 26.
On prospects, Digi said given the evolving Covid-19 situation and its uncertain effect on the country’s economic outlook, the company would prioritise several issues in the months ahead, including protecting cash flow through cost measures and financial flexibility, and investing in strengthening network and information technology infrastructure to support growing data demand.
At 3.30pm, the counter was up one sen to RM4.50, with 1.62 million shares traded. — April 23, 2020, Bernama
