Digi’s Q3 2020 service revenue up by 4.3% q-o-q

Digi.com Berhad (Digi) recorded a 4.3 percent quarter-on-quarter (q-o-q) service revenue growth to RM1,374 million, fuelled by a 5.4 percent increase in internet and digital revenue. This was attributed to increased uptake of relevant digital services and improved data monetisation opportunities.

Internet and digital revenue rose 9.8 percent y-o-y to RM1,004 million, represented 73.1 percent of service revenue against 64.6 percent a year ago. Postpaid revenue stood at RM626 million while prepaid subscriber base grew, contributing to a 7 percent increase in Prepaid revenue for the quarter.

Topline growth was driven by commercial momentum recovering to pre-Movement Control Order (MCO) levels, that increased its EBITDA to RM786 million, with an EBITDA margin of 50 percent. Operating cashflow also strengthened 19.6 percent q-o-q to RM652 million.

The stronger q-o-q trajectory reflects the company’s effective recovery plans and sharp focus on curating value-based products. This was achieved while delivering highly reliable services essential to meet customers’ current needs, against challenging economic conditions brought about by Covid-19.

Profit After Tax (PAT) was RM321 million or 20.3 percent margin.

Digi’s CEO Albern Murty said, “Digi navigated well through a difficult time to deliver a better quarter, driven by our resilience to improve business opportunities as we supported our customers. to emerge stronger from the crisis. In the quarter, we expanded our range of innovative and value-driven offerings across our core product portfolios, launched fibre broadband nationwide to serve more households with total connectivity, and modernised our distribution and network capabilities. Going forward, we remain focused on financial resilience by prioritising investments in strategic areas to enable greater affordability for customers, and drive growth for the business.”

In Q3 2020, the company invested RM134 million in capex for network enhancements to maintain service quality and availability nationwide. An additional 44 percent new and upgraded sites were deployed in 9M 2020 versus a year ago. 

Digi’s 4G LTE and LTE-A network now covers 91 percent and 74 percent of the population respectively, together with a fibre network that stretches 9,850km. These enhancements were crucial to support the 26.1 percent year-on-year (y-o-y) surge in total data traffic and 17.4GB of monthly data usage per user from 12.9GB a year ago.

Total revenue grew 8.7 percent q-o-q and 1.1 percent y-o-y to RM1,579 million on a wider range of innovative core product launches and digital solutions curated to suit customers’ connectivity needs. Additionally, there was an uplift in prepaid revenue substantially cushioned y-o-y service revenue decline, narrowing it to -2.8 percent despite lower regulated interconnect rates, and weaker roaming and consumer spend due to Covid-19.

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