KUALA LUMPUR (Oct 21): Digi.Com Bhd reported on Thursday that third quarter net profit fell 2.48% to RM312.82 million from RM320.76 million a year earlier despite a rise in the mobile telecommunication network provider’s revenue, as the company registered, among others, higher depreciation and amortisation for its assets besides net loss on foreign exchange and fair value movement of foreign currency forward contracts.
In a statement to Bursa Malaysia, Digi.Com said revenue rose to RM1.584 billion in the third quarter ended Sept 30, 2021 (3QFY21) from RM1.579 billion a year earlier as postpaid service revenue strengthened to RM633 million, the highest in five quarters as the company's number of postpaid service subscribers rose to 3.25 million from 3.02 million.
Digi.Com said, "Postpaid revenue strengthened to RM633 million, up 1.6% quarter-on-quarter and 1.1% year-on-year, the highest in five quarters, reflecting our strategic efforts to drive data monetisation as well as delivering sustainable subscriber and revenue mix. As such, internet and digital revenue mix strengthened to 77.5% of service revenue.”
For the nine months ended Sept 30, 2021 (9MFY21), Digi.Com said cumulative net profit fell to RM857.55 million from RM940.79 million a year earlier while revenue was higher at RM4.75 billion from RM4.59 billion.
On a quarterly basis, Digi.Com said 3QFY21 profit after tax was lifted by 11.8% to RM312.82 million from the preceding quarter. "Lower depreciation and amortisation and sustained net finance costs" contributed to the quarterly improvement in 3QFY21, the company said.
For 3QFY21, Digi.Com declared a tax-exempt dividend of four sen a share.
The company said the dividend’s ex and payment dates fall on Nov 17, 2021 and Dec 17, 2021 respectively.
Looking ahead, Digi.Com said the company will continue to execute its strategy which focuses on strengthening mobile offerings and digital services for subscribers to benefit from growing digital opportunities.
The company said it remains highly committed to continuing its effort to support societal recovery from Covid-19 and to expand the widest mobile telecommunication network coverage in rural areas.
As the operating and retail environment is gradually returning to normal conditions, Digi.Com said it is revising, among others, its FY21 guidance to a low single-digit decline for service revenue and low-to-mid single-digit decline for earnings before interest, taxes, depreciation, and amortisation.
"Lastly, the proposed transaction relating to the prior-announced proposed merger between Celcom Axiata Bhd and Digi Telecommunications Sdn Bhd is progressing as planned. The completion of the proposed transaction is subject to receipt of regulatory approvals, approval by all shareholders, and other customary terms and conditions.
"Expected dates for approval and completion of the transaction within the second quarter of 2022 remain unchanged,” Digi.Com said.
At Bursa’s 12:30pm break on Thursday (Oct 21), Digi.Com’s share price settled five sen or 1.14% lower at RM4.35, valuing the company at about RM33.84 billion.
Digi.Com has 7.78 billion issued shares, according to its quarterly financial report.