Digi.com sees higher earnings in Q3, proposes 5 sen dividend

PETALING JAYA: Digi.com Bhd reported a 2.1% rise in net profit to RM392.54 million for the third quarter ended Sept 30 against RM384.62 million in the previous corresponding period, underpinned by higher data consumption and lower depreciation and amortisation.

Its revenue expanded 1.9% to RM1.6 billion from RM1.57 billion.

The group has proposed to declare an interim dividend of 5 sen per share or RM389 million for the quarter under review.

Digi said in a filing with the stock exchange that its postpaid segment registered a 14.9% growth in service revenue to RM640 million with a marginal drop in average revenue per user (ARPU) to RM76 from RM77.

However, its prepaid service revenue fell 9.1% to RM835 million, leading to a slight fall in ARPU to RM31 from RM32, due to non-internet prepaid revenue continued to trace lower as a result of a combination of moderating demand for legacy voice and messaging services coupled with progressive migration of prepaid subscribers to postpaid.

During the quarter, Digi invested RM127 million in capital expenditure (capex) or 8.6% of service revenue, while delivering 4G-LTE and LTE-A network coverage expansion to 89% and 61% of population supported by 8,300km of fiber network nationwide.

Digi’s nine-month net profit increased 4.2% to RM1.16 billion from RM1.12 billion on the back of a 3.3% growth in revenue to RM4.85 billion from RM4.7 billion.

Despite market challenges ahead, the group said it will continue to aim towards improving 2018 service revenue growth, sustaining earnings before interest, taxes, depreciation and amortisation (ebitda) margin around 46-47% and delivering efficient capex between 11-12% of service revenue.

Digi’s share price gained 6 sen or 1.4% to close at RM4.46 today on 3.23 million shares done.

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