KUALA LUMPUR, 16 JULY: DiGi.Com Bhd’s net profit fell 2.82 percent to RM279.91 million in the second quarter of 2021 (2QFY21) from RM288.04 million the previous year, pulled down by higher other expenses paid in the quarter despite higher revenue. According to the telco’s reports, quarterly earnings per share fell to 3.6 sen from 3.7 sen. In addition, the company declared a 3.6 sen per share payout, bringing its first-half payments to seven sen per share, down from 7.9 sen last year.
Despite a drop in quarterly net profit, DiGi stated normalised profit after tax (PAT) increased 4.4 percent year over year (y-o-y) due to toppling improvement, lower depreciation, and lower net finance costs.
On improved mobile segment and device sales, quarterly revenue increased 11.43 percent to RM1.62 billion from RM1.45 billion in 2QFY20.
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With the exception of a non-recurring device revenue gain of RM37 million, underlying total revenue increased 2.0 percent quarter-on-quarter (q-o-q) and 8.9% year-on-year, owing to consistent commercial momentum and strong execution across all categories.
“In the meantime, our strategic efforts in driving data monetisation and improving penetration rate in the young and B40 categories were highlighted by service revenue recovery of 0.2 percent q-o-q and 1.7 percent y-o-y,” it stated.
Prepaid revenue increased year over year as a result of the continued high demand for mobile connection, but post-paid revenue decreased as a result of the adverse operating environment.
The group’s data subscriber base grew by 2.2 percent quarter over quarter and 5.2 percent year over year. The blended average revenue per user (ARPU) was likewise maintained at RM43, while the prepaid ARPU increased to RM34.
Despite greater revenue, DiGi’s cumulative net profit declined 12.14 percent to RM544.74 million from RM620.03 million for the six months ended June 31, 2021, due to higher costs, operating expenditure, and finance charges.
Higher gadget sales more than offset lower telecom income, resulting in a 5.2 percent increase in revenue to RM3.17 billion from RM3.01 billion.
DiGi said it increased its network optimization initiatives, investing RM196 million in network capacity increases and new site deployments year over year.
The company’s FY21 guidance of a low single-digit reduction in service revenue and a medium single-digit decline in earnings before interest, taxes, depreciation, and amortisation has been reaffirmed.
“DiGi remains committed to supporting society’s connectivity needs in these times,” said chief executive officer Albern Murty, “as we intensify efforts to provide a consistent network experience, deliver on Jendela ambitions, and bring to market more innovative and affordable plans to support consumers.”
“At the same time, we continue to increase our vigilance on the safety and health of our workers, partners, and, in particular, our retail and network frontliners,” Murty added.
At the noon market break, DiGi’s shares rose one sen, or 0.24 percent, to RM4.15 per share, valuing the company at RM32.27 billion./n
