Thursday 28 Mar 2024
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KUALA LUMPUR (April 22): Telecommunications company DiGi.Com Bhd saw its net profit for the first quarter ended March 31, 2016 fall 16.7% to RM399.04 million or 5.13 sen per share from RM479.22 million or 6.16 sen per share a year earlier.

The decline in profitability was on the back of a 7.7% decline in revenue for the quarter to RM1.65 billion compared to the previous year's RM1.79 billion, its bourse filing today showed.

DiGi also declared a first interim dividend of 5.1 sen per share, payable on June 24.

Based on its financial statements, the lower net profit for the quarter was despite foreign exchange and derivatives gains of RM9.28 million, as opposed to a loss of RM6.09 million in the previous year.

The group saw higher depreciation and amortisation as well as higher finance costs during the period.

It said service revenue for the quarter fell 1.8% year-on-year to RM1.56 billion, attributed to "seasonal trends", but noted that the fall was cushioned by postpaid service revenue, which grew 6.9%.

Meanwhile, its postpaid Internet subscribers increased to 1.5 million users, contributing to higher postpaid Internet revenue of RM207 million for the period.

"Our focus on network quality has enabled more customers to better enjoy our new innovative 360º Internet offerings.

"We now have a stronger proposition for customers who would have never considered DiGi's services in the past, given our solid history of providing competitive prepaid services, an area where we continue to remain resilient," said DiGi chief executive officer Albern Murty in a statement.

The group said its customer base stood at 12.3 million as at the end of the first quarter, of which 7.9 million users or 64.2% were active Internet customers.

"Moving forward, we will continue meeting the needs of our customers' digital lifestyles, leveraging on our solid network as the vehicle to bring relevant, personalised and engaging digital products and services to our customers, while keeping a keen eye on service quality and customer excellence," said the group.

DiGi was unchanged at RM4.68 today, bringing its market capitalisation to RM36.39 billion.

 

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