Efficient operations, transformation initiatives, Malaysian internet subscribers growth and B2B revenues sustained despite macro Covid-19 related pressures
Subang Jaya, 27 January 2021 – Digi.com Berhad (Digi) today announced its FY2020 results, underscoring operational efficiency, digital modernisation efforts, and across-the-board operational resilience as key priorities for the company during the year. Digi’s solid business continuity management underpinned the company’s disciplined execution on securing growth opportunities, ensuring reliable nationwide connectivity, and serving customers’ needs as the Conditional Movement Control Order (CMCO) returned to several key markets in the fourth quarter of 2020.
A strong uptake in digital services and overall improved data usage resulted in a 9.9% Y-Y growth in internet and digital revenue for FY2020. Disciplined operational efficiency initiatives yielded opex savings of -1.4% Y-Y, and EBITDA of RM3.08 billion, in line with 2020 revised guidance.
In 4Q 2020, the company increased CAPEX 1 to RM275 million, catered to delivering fastest and most consistent network, driving customer engagements via digital channels, and curating relevant and best-in-value product offerings. These efforts contributed to the net growth of Postpaid and Business subscribers.
Digi’s CEO Albern Murty said, “Digi rallied against a challenging and uncertain market throughout 2020, driven by efficient operations and transformation initiatives. In the months ahead, we will maintain a sharp focus on accelerating our digital agenda and modernising our network and IT infrastructure to enhance customer experience, as well as supporting the society’s recovery in this current climate.”
Throughout the year, Digi maintained its strong support to aid the nation’s Covid-19 recovery through the provision of free 1GB data daily for productivity and education, access to PENJANA digitalisation grants for SMEs, and various Yellow Heart community initiatives to support critical humanitarian and emergency relief efforts.
Resilient quarter and FY2020 business performance
Steered by smart investments to drive customer value and better network experience, Digi invested a total of RM773 million CAPEX in FY2020. As a result, its robust 4G LTE and LTE-A network coverage grew to 92% and 75% of the population nationwide respectively, alongside 9,981 KM of extensive fibre network.
EBITDA (before other items - boi)
EBITDA (boi) margin
Profit after tax
All analysis and comparisons are based on post MFRS 16
Key financial and operational highlights in 4Q2020
Connecting Malaysians with more affordable products and better network experience nationwide in 4Q2020
Supporting Covid-19 humanitarian efforts and leading in responsible business practices
2021 outlook and guidance
While the market conditions continue to be challenging, Digi remain focused on its long-term strategic goals, set on solid fundamentals of robust financials, organisational agility and its trusted and responsible brand.
Digi will prioritise on:
2021 guidance is summarised as follows:
revenue Low single digit decline EBITDA Medium single digit decline Capex-to-total
revenue ratio 14.0% - 15.0%
More on Digi’s 4Q 2020 performance is available here.
1 Included Asset Retirement Obligation (ARO) adjustments in 4Q 2020