Friday 29 Mar 2024
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KUALA LUMPUR (Jan 22): Digi.Com Bhd reported today a 9.23% drop in fourth quarter net profit to RM342.92 million from RM377.8 million a year earlier as the mobile telecommunication network service provider contended with a drop in prepaid revenue as postpaid income grew.

Higher depreciation, amortisation and impairment besides finance cost also curbed net profit growth during the fourth quarter ended Dec 31, 2019 (4QFY19).

In a statement to Bursa Malaysia today, Digi said the group's total revenue rose to RM1.68 billion from RM1.67 billion a year ago. Digi said postpaid revenue grew 9.6% year-on-year (y-o-y) to RM731 million while prepaid revenue declined 9.7% y-o-y to RM736 million.

Digi said prepaid revenue dropped "amid impact from lower interconnect rates, moderating non-Internet prepaid services and continued postpaid conversions".

Digi's income statement showed that the company's depreciation, amortisation and impairment rose to RM290.78 million from RM196.49 million while finance cost was higher at RM67.91 million compared to RM30.68 million.

Digi's income statement also showed the company registered an operating model transition cost of RM8.6 million during the quarter.

For the full year, Digi said FY19 net profit fell to RM1.43 billion from RM1.54 billion a year earlier while revenue was down at RM6.3 billion from RM6.53 billion.

For 4QFY19, Digi proposed a dividend of 4.4 sen a share, which brings full-year dividends to 18.2 sen a share.

Looking ahead, Digi said it will continue to sharpen its focus on structural operational efficiencies, investing in what matters most for its customers and continuously drive value creation for its stakeholders.

"Our continued strategic focus and investments in shifting revenue mix, supported by robust network expansion enabled sustainable revenue growth while delivering profitable operations and healthy returns to shareholders," Digi said.

At Bursa today, Digi's share price fell one sen or 0.22% to RM4.54 at 3:28pm for a market capitalisation of RM35.32 billion. The stock traded between RM4.51 and RM4.57 so far today.

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