SUBANG JAYA, 16 October 2020 – Digi.com Berhad (Digi) recorded a 4.3% quarter-on-quarter (q-o-q) service revenue growth to RM1,374 million, fuelled by a 5.4% increase in internet and digital revenue. This was attributed to increased uptake of relevant digital services and improved data monetisation opportunities.
Topline growth was driven by commercial momentum recovering to pre-Movement Control Order (MCO) levels, that increased its EBITDA to RM786 million, with an EBITDA margin of 50%. Operating cashflow also strengthened 19.6% q-o-q to RM652 million.
The stronger q-o-q trajectory reflects the company’s effective recovery plans and sharp focus on curating value-based products. This was achieved while delivering highly reliable services essential to meet customers’ current needs, against challenging economic conditions brought about by Covid-19.
Digi’s CEO Albern Murty said, “Digi navigated well through a difficult time to deliver a better quarter, driven by our resilience to improve business opportunities as we supported our customers. to emerge stronger from the crisis. In the quarter, we expanded our range of innovative and value-driven offerings across our core product portfolios, launched fibre broadband nationwide to serve more households with total connectivity, and modernised our distribution and network capabilities. Going forward, we remain focused on financial resilience by prioritising investments in strategic areas to enable greater affordability for customers, and drive growth for the business.”
Stronger Q3 2020 business performance driven by growing LTE network
In Q3 2020, the company invested RM134 million in capex for network enhancements to maintain service quality and availability nationwide. An additional 44% new and upgraded sites were deployed in 9M 2020 versus a year ago. Digi’s 4G LTE and LTE-A network now covers 91% and 74% of the population respectively, together with a fibre network that stretches 9,850km. These enhancements were crucial to support the 26.1% year-on-year (y-o-y) surge in total data traffic and 17.4GB of monthly data usage per user from 12.9GB a year ago.
Profit after tax
All analysis and comparisons are based on post MFRS 16
Key Financial Highlights
Sustaining stronger growth trajectory through innovation while ensuring customers stay connected
Digi takes into consideration the uncertain market conditions related to the rising severity of the Covid-19 pandemic in the country. The company is consequently fully committed to delivering on the recently announced Pelan Jalinan Digital Negara (JENDELA), that aims to deliver seamless and quality connectivity to all Malaysians. The company is keeping a sharp focus on key priorities anchored on its resilient fundamentals:
More on Digi’s 3Q 2020 performance is available here.