SUBANG JAYA, 12 July 2019 – Digi.com Berhad (Digi) reported stronger quarterly performance in Q2 2019, reflecting the company’s ability to drive a sustainable business with healthy margins and remain resilient in a challenging market. For the quarter, Digi delivered RM1,451 million in service revenue2, and EBITDA1 at RM752 million or 49% margin.
The company’s efforts to provide more value and digital experiences to customers saw a strong response, with continued growth reflected in postpaid and internet revenues, while prepaid revenue stabilised as internet adoption continues to exceed the use of legacy voice services in this segment.
The company invested RM261 million capex or 18.6% of service revenue in Q2 2019 to accelerate technology capabilities that will activate growth opportunities in the next quarter. These include IT capability improvements, network capacity and coverage upgrades, fibre network expansion, and Network Function Virtualisation (NFV) deployment. Digi’s network now connects 11.4 million customers, serving populated areas across Malaysia with 4G LTE: 90%, LTE-A: 70% coverage and 9,100km of fibre network.
Net adds totalled 113,000 for the quarter. Growth was primarily driven by the company’s easy device ownership programme, PhoneFreedom 365, higher demand for entry-level plans and growing subscriptions by businesses. Postpaid revenue2 grew 12.6% y-o-y to RM697 million while postpaid business revenue increased 5% y-o-y. Prepaid revenue trimmed 13.2% y-o-y to RM751 million.
The company’s internet revenue increased 9.2% y-o-y to RM879 million or 62.7% of service revenue. This was contributed by a larger 9.3 million internet customer and 83.1% smartphone base, with average monthly data usage totalling 11.4GB per customer.
Digi’s CEO Albern Murty said, “We aim to deepen our customer insights capabilities and digitalisation efforts to drive differentiated customer experiences, connecting more Malaysians with services that matter most to them. We have started executing on this strategy and remain resilient in the midst of challenging market conditions.”
Stronger Q2 2019 performance
RM million2Q181Q192Q191Q-o-QY-o-Y<1H181H191H-o-1HTotal revenue 1,618 1,509 1,549 2.7% -4.3% 3,253 3,058 -6.0% Service revenue2 1,484 1,441 1,451 0.7% -2.2% 2,967 2,892 -2.5% EBITDA 768 723 752 4.0% -2.1% 1,543 1,475 -4.4% EBITDA margin 47% 48% 49% 0.6pp 1.1pp 47% 48% 0.8pp PAT 384 366 414 13.1% 7.8% 770 780 1.3%
1Include non-recurring cost benefit in COGS of RM34 million and Opex of RM28 million
2Revenue ex- contract asset amortisation
All analysis and comparisons are based on post MFRS 9 and MFRS 15.
Key Financial Highlights (Y-o-Y)
Connecting Malaysians with easy, affordable access to quality network and digital services in Q2 2019:
For more on Digi’s Q2 2019 performance, visit http://www.digi.com.my/investors.