KUALA LUMPUR (Jan 28): Digi.Com Bhd’s net profit for the fourth quarter ended Dec 31, 2021 (4QFY21) increased by 8.7% to RM304.55 million from RM280.18 million a year ago due to operational efficiencies and positive outcomes of long-standing tax claims.

The group’s bourse filing also showed that its earnings per share (EPS) went up to 3.92 sen from 3.6 sen.

Quarterly revenue increased slightly by 1.4% year-on-year (y-o-y) to RM1.58 billion from RM1.56 billion, supported by positive momentum in core segments and healthy device revenue growth.

The group also declared a fourth interim dividend of 3.9 sen for FY21 to be paid on March 25. This brought total EPS for the year to 14.9 sen.

“Based on the solid earnings for 4QFY21 and a robust balance sheet, the board of directors approved the final interim dividend of 3.9 sen per share, equivalent to RM303 million in dividend payout,” Digi explained.

As such, a total of RM1.16 billion in dividends would be distributed to valued shareholders for FY21, reflecting the group’s commitment to delivering sustainable and attractive shareholder returns, the group said.

Its 4QFY21 earnings before interest, taxes, depreciation and amortisation (EBITDA) — before other incomes and other expenses (boi) — amounted to RM740 million or a margin of 46.7%, which was 3.4% lower y-o-y due to higher costs in the quarter.

Meanwhile, FY21 EBITDA (boi) fell 2.3% to RM3.01 billion.

“Excluding non-recurring effects, normalised EBITDA for the whole year improved by 0.1% to RM3.02 billion, with a resilient normalised margin of 48% reflecting Digi’s leadership in running efficient and modernised operations."

Service revenue shrank by 2.1% to RM1.32 billion, mainly due to softer traditional voice usage and the temporary impact of migration to a new module of the customer billing platform.

“Prepaid revenue declined by 2.6% y-o-y to RM625 million despite healthy gross additions from a growing Malaysian base through successful acquisition efforts to leverage high-speed Internet propositions in under-penetrated segments. Meanwhile, post-paid revenue of RM629 million grew 1.6% y-o-y, driven by positive subs (subscriber) growth and a lower churn rate. B2B (business-to-business) continued its good trend with revenue increasing by a healthy 8% y-o-y for 4QFY21 and by 4.8% for FY21 despite the adverse Covid-19 impact,” noted Digi.

On a quarter-on-quarter basis, net profit decreased by 2.64% from RM312.81 million for 3QFY21, while revenue slipped 0.11% from RM1.58 billion.

For full FY21, the group posted a net profit of RM1.16 billion, down by 4.82% from RM1.22 billion a year ago. Full-year revenue went up by 2.97% to RM6.34 billion from RM6.15 billion.

“We delivered our 2021 priorities amid the current business environment by emphasising an improved network and digital experiences for our customers and driving efficiencies across the operations. We also remain committed to supporting pandemic and flood relief efforts through various community-focused initiatives and relief aid, and in keeping our customers connected,” said Digi chief executive officer Albern Murty.

According to the group, its solid FY21 performance was in line with its expectations amid a challenging and difficult environment, and reflected the resilience of its operating model.

“Our efforts to strengthen the quality of our Malaysian base and reduce reliance on low-quality high-churn segments have shown results. Furthermore, the pandemic has emphasised our role to accelerate digitalisation and connectivity needs of businesses and society.

“We entered the year with a strong momentum in key customer segments, anchored by our strong foundation and clear brand purpose. We remain cognisant of ongoing developments surrounding the proposed merger and MyDIGITAL initiatives, and work proactively to grasp opportunities and mitigate risks related to these events,” the group added.

For FY22, Digi said it is committed to delivering focused offerings in core and near-core connectivity solutions, with the post-paid, B2B and fibre segments as important growth drivers; innovating and be a leader in modernisation in both customer touchpoint and organisation processes; and raising responsible business standards while continuing efforts to drive an inclusive digital society.

At the time of writing on Friday (Jan 28), Digi shares had risen five sen or 1.32% to RM3.83, with a market capitalisation of RM29.86 billion.