KUALA LUMPUR (Jan 23): DiGi.Com Bhd's net profit fell 3.9% to RM360.08 million in the fourth quarter ended Dec 31, 2017 (4QFY17) from RM374.63 million a year ago, on higher finance cost from adverse fair value changes on interest rate swaps of RM12 million and settlement costs of RM6 million.

It posted service revenue of RM1.51 billion, which was down 2.7% year-on-year (y-o-y).

Earnings per share was lower at 4.63 sen in 4QFY17 compared with 4.82 sen in 4QFY16. Quarterly revenue also slipped 1.5% to RM1.64 billion from RM1.67 billion a year ago.

Despite a weak quarterly performance, DiGi declared a fourth interim dividend of 4.6 sen per share totalling RM358 million for the financial year ended Dec 31, 2017 (FY17), payable on March 23.

In a statement today, DiGi said its internet subscribers increased 571,000 to 8.7 million or 73.7% of its subscriber base in 4QFY17, while 4G subscribers increased 1.9 million to 6.2 million from a year ago.

"Strong internet usage from both growing internet and 4G subscribers on Digi’s 4G Plus network contributed to record high internet revenue of RM747 million, representing 49.4% of total service revenue of RM1.51 billion," it added.

For full year FY17, DiGi's net profit dropped 9.6% to RM1.48 billion from RM1.63 billion the previous year, while revenue fell 3.9% to RM6.34 billion from RM6.6 billion in FY16.

FY17 service revenue stood at RM5.91 billion, down 5% y-o-y mainly due to lower revenue from prepaid legacy services.

DiGi said it invested RM170 million capital expenditure (capex) in 4QFY17 as planned, with full year capex at RM748 million or 12.6% of service revenue.

Its 4G LTE and LTE-A network coverage reached 87% and 55% of population as at Dec 31, 2017.

Going forward, DiGi said although market conditions remained challenging, it aims to improve 2018 service revenue growth development, guiding a flat to low single-digit decline.

It also expects to sustain earnings before interest, taxes, depreciation and amortisation (ebitda) at around 2017 level leveraging on sustainable growth, disciplined cost management and innovating on operational efficiencies. In FY17, DiGi's ebitda margin strengthened to 46%, while absolute ebitda came in at RM2.89 billion.

"We also aspire to deliver a capex of between 10% and 12% of service revenue," it added.

DiGi shares closed 3 sen or 0.61% higher at RM4.92 today, with 3.24 million shares done, bringing a market capitalisation of RM38.25 billion.