KUALA LUMPUR (April 23): Digi.Com Bhd's net profit fell 2.78% to RM332 million in the first quarter ended March 31, 2020 (1QFY20) from RM341.5 million a year earlier, as other expenses jumped, while it recorded a net loss from its foreign currency and fair value movement currency forward contracts.

Other expenses rose to RM807.97 million from RM711.19 million, while the group reported a net loss of RM1.47 million for its foreign currency and fair value movement currency forward contracts, as opposed to a net gain of RM3.57 million previously, its bourse filing today showed.

These, however, were partly offset by lower finance costs, which more than halved to RM21.47 million from RM51.67 million, and a doubling of interest income to RM7.53 million from RM3.74 million.

"Softer topline development from shift in revenue mix and increase in investments on postpaid contracting and renewal activities moderated EBITDA by 6.2% y-o-y (year-on-year) and 7.5% q-o-q (quarter-on-quarter) to RM756 million, although EBITDA margin [was] sustained at 49%. Profit before tax (PBT) declined by 4.0% y-o-y and 5.6% q-o-q to RM435 million as a flow through from EBITDA, and after accounting for RM306 million depreciation and amortisation cost despite a lower net finance cost of RM14 million," the group noted.

Total revenue for 1QFY20, however, climbed 3.43% y-o-y to RM1.56 billion from RM1.51 billion, underpinned by focused customer offerings to drive quality subscriber base and network connectivity.

Postpaid revenue grew 5.5% y-o-y to RM656 million over a base of 3.1 million subscribers, supported by healthy acquisitions, conversion of prepaid to postpaid plans, and plan upgrades. Prepaid internet and digital revenue also increased 8.2% y-o-y to RM434 million, though the number of subscribers in the prepaid segment was marginally lower at 6.42 million versus 6.45 million previously.

The mobile telecommunication network provider declared a first interim dividend per share of 4.2 sen, payable on June 26, 2020.

“We continued the good momentum from 4QFY19 to ensure we were able to quickly adapt to the growing Covid-19 concern, leveraging our digital capabilities and resilient organisational culture,” said Digi chief executive officer Albern Murty.

“Our first quarter results also reflect the sustainable revenue portfolio of our business. Moving forward, we will continue to maintain a balance of responsible financial management together with focused investments on network and digital capabilities to stay resilient, while we address the challenges from Covid-19,” he said.

Trading of Digi's shares was suspended for an hour from 2.30pm to make way for the earnings announcement today. At 4.05pm, the stock was up 1 sen at RM4.50, giving it a market capitalisation of RM35 billion, after 2.22 million shares were done.