Postpaid, data growth engines and disciplined financial management delivers solid y-o-y performance
SUBANG JAYA, 24 January 2019 - Digi.com Berhad (Digi) delivered steady performance in Q4-FY 2018 with strong contributions from its postpaid and internet businesses, underlined by its well-implemented digitisation and efficiency strategy. The company closed the quarter with RM1,482 million in service revenue, now serving 11.7 million customers on its network. FY 2018 service revenue stood at RM5.92 billion with a healthy EBITDA of RM2.96 billion or 46% margin.
Postpaid revenue grew 15.0% y-o-y to RM667 million, adding 75,000 customers to its now 2.8 million postpaid base. The company registered its best performing postpaid revenue growth of 14.8% ahead of the industry to close FY 2018 at RM2.52 billion, representing 43% of total service revenue.
Data traffic grew 70% y-o-y with customers’ monthly data usage averaging at 9.9GB. The network serves an expanded 9.2 million internet and 7.9 million 4G LTE customer base, with an increased smartphone adoption of 79.6%. Higher data consumption across its prepaid, postpaid and digital businesses drove overall internet revenue up by 13.7% y-o-y to RM849 million, constituting 57.3% of service revenue. FY 2018 internet revenue totalled RM3.23 billion, 19.9% higher than last year.
Digi's CEO Albern Murty said, "2018 was a strong year of execution for the business. We kept disciplined on driving growth, efficiency and digital transformation while staying focused on service delivery excellence to customers. This combined strategy has led us to deliver value for customers and shareholders alike. We plan to continue making smart investments to redefine our customer experience and offer affordable, meaningful connectivity for all, while enhancing targeted efficiencies."
Stronger sequential Q4 and FY2018 Financials
RM million 4Q18 3Q18 Q-o-Q 4Q17 Y-o-Y FY18 FY17 FY-o-FY Service revenue 1,482 1,475 0.5% 1,513 (2.0%) 5,924 5,914 (0.2%) Total revenue 1,679 1,572 6.8% 1,645 2.1% 6,436 6,341 1.5% EBITDA 7472 725 3.0% 731 2.2% 2,956 2,886 2.4% EBITDA margin 45% 46% (1.6pp) 44% 0.1pp 46% 46% 0.4pp PAT 385 368 4.6% 360 6.9% 1,464 1,477 (0.9%)
Note: All analysis and comparisons are made based on old accounting principles.
Key Highlights (Y-o-Y)
Enabling meaningful connections with affordable, innovative digital services and a consistent network experience in Q4 2018:
2019 Outlook Guidance
Digi expects to deliver sustainable service revenue growth and EBITDA development by better serving the existing base, growing the high ARPU base, maintaining network parity and operational excellence initiatives. Digi’s 2019 guidance1 is as follows:
1Guidance above exclude impact of MFRS 16: Leases.
More information on Digi's Q4 and FY 2018 performance is available at www.digi.com.my/investors.
We are a mobile connectivity and internet services provider enabling 11.7 million Malaysians to get the most benefit out of an increasingly connected world. With a strong legacy of product and service innovation delivered on Malaysia's widest 4G Plus network, Digi has an ambition to become customers' favourite digital partner, providing relevant, personalised and engaging digital products and services that will further enable all Malaysians' digital lifestyles. This is because we believe digital communication empowers everyone to improve their lives, build societies and secure a better future for all. Listed on Bursa Malaysia, Digi is part of global telecommunications provider Telenor Group and is a leader in driving progressive and responsible business practices. For more information about Digi, visit www.digi.com.my.
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