KUALA LUMPUR (Oct 18): Digi.Com Bhd net profit for the third quarter ended Sept 30, 2019 (3QFY19) slipped to RM356.1 million from RM392.54 million a year earlier, on the back of lower revenue. 

In a filing with Bursa Securities today, DiGi said revenue for the quarter slipped to RM1.56 billion from RM1.59 billion previously. 

Earnings per share was 4.58 sen, versus 5.05 sen earlier. 

DiGi declared a third interim dividend of 4.5 sen per share to be paid on Dec 19. 

For the nine months ended Sept 30 (9MFY19), DiGi's net profit dipped to RM1.09 billion from RM1.17 billion, on the back of RM4.62 billion revenue versus RM4.85 billion a year earlier. 

In a management discussion and analysis accompanying the results, DiGi said since the start of 2019, it had taken the challenge to modernise its 4G network with better capacity and efficiency, while actively re-farmed existing spectrum portfolio to deliver a stronger and better 4G network experience for customers. 

DiGi said in 3QFY19, it continued to improve service revenue growth trajectory quarter-on-quarter, while narrowing the decline year-on-year, underpinned by 12.0% postpaid revenue growth year-on-year to RM717 million. It actively grew internet revenue to 64.0% of service revenue or RM905 million during the quarter. 

Overall internet subscriber base strengthened to 9.4 million or 82.6% of its 11.3 million subscriber base during the quarter, an increase of 357,000 from a year ago, while data traffic volumes surged 49% year-on-year and monthly data usage amongst DiGi's subscribers increased to 12.9GB. Meanwhile, ARPU was steady at RM40 with a stronger postpaid and prepaid internet subscriber base.

DiGi said mobile service revenue strengthened 0.9% sequentially to RM1.46 billion or RM1.41 billion net of contract assets amortisation, supported by narrowed prepaid decline and solid growth from postpaid.

On its prospects, DiGi said the company demonstrated service revenue resilience in 9MFY19 and disciplined focus in driving sustainable growth and profitable operations, with solid organic postpaid revenue growth of 12.7% and internet revenue growth of 11.0%, while EBITDA margin stood healthy at 48%, relatively stronger compared with the industry's profitability.

“We have made solid improvement in delivering best 4G network experience, with our customers enjoying marked improvement in data download performance nationwide, according to the recent speed test report.

“In the final quarter of 2019 [4QFY19], we will continue to execute and deliver on our growth strategies, especially in driving postpaid, B2B and prepaid internet growth. 

“We will continue to sharpen our focus on structural operational efficiencies, investing in what matters most for our customers and continuously drive value creation for our stakeholders,” it said. 

At midday break, DiGi shed -0.42% or 2 sen to RM4.72, for a market capitaisation of RM36.69 billion.