KUALA LUMPUR (Jan 23): DiGi.Com Bhd's fourth quarter net profit slipped 2% from a year earlier as revenue fell on lower prepaid income and as the group registered higher taxes.

In a statement to Bursa Malaysia today, DiGi said net profit dropped to RM374.63 million in the fourth quarter ended Dec 31, 2016 (4QFY16) from RM382.36 million. DiGi said revenue slipped to RM1.67 billion from RM1.72 billion.

DiGi said profit before tax rose to RM543.61 million from RM519.36 million.

"Prepaid revenue contracted 2% quarter-on-quarter or 8.2% year-on-year to RM1.04 billion while prepaid revenue for the year closed 6.6% lower at RM4.27 billion over a relatively stable prepaid subscriber base of 10.2 million.

"The group registered higher effective tax rate than the statutory tax rate of 24% for the current quarter and financial year ended Dec 31, 2016 at 31.1% and 27.1% respectively after accounting for an estimated tax adjustment from the review of tax incentive claimable in prior years amounting to RM34.9 million and certain expenses not deductible for tax purposes," DiGi said.

For the full year, DiGi said net profit fell to RM1.63 billion from RM1.72 billion a year earlier. Revenue declined to RM6.6 billion from RM6.91 billion.

Despite the weaker 4QFY16 and full-year numbers, DiGi declared a tax-free dividend of 4.8 sen per share for 4QFY16, payable on Mar 31. The 4QFY16 dividend brings full-year dividends to 20.9 sen.

Looking ahead, DiGi said its stronger Internet and digital service positioning besides robust infrastructure capability in 2016 would lead to a favourable start for the company in 2017 to pursue innovation amid customers' evolving digital needs.

"The key priorities in 2017 will focus on relentlessly growing postpaid and Malaysian prepaid opportunities while defending core service revenue streams," DiGi said.

At 3.02pm, DiGi was trading unchanged at RM4.92, with a market capitalisation of RM38.25 billion.