Digi delivers RM5.43 billion service revenue in FY2020 along with efficient operation

Digi has seen a strong uptake in digital services and overall improved data usage resulting in a 9.9 percent Y-Y growth in internet and digital revenue for FY2020. Disciplined operational efficiency initiatives yielded opex savings of -1.4 percent Y-Y, and EBITDA of RM3.08 billion, in line with 2020 revised guidance. 

In 4Q 2020, the company increased CAPEX to RM275 million, catered to delivering the fastest and most consistent network, driving customer engagements via digital channels, and curating relevant and best-in-value product offerings. These efforts contributed to the net growth of Postpaid and Business subscribers. 

Digi invested a total of RM773 million CAPEX in FY2020, guided by smart investments to drive customer value and better network experience, As a result, its robust 4G LTE and LTE-A network coverage grew to 92 percent and 75 percent of the population nationwide respectively, alongside 9,981 KM of the extensive fibre network.

Overall, the key financial and operational highlights in 4Q2020 showed total data traffic grew 8.2 percent Q-Q and 28.2 percent Y-Y as a continued effect of CMCO.  Internet users of 8.7 million, equivalent to 87.3 percent of penetration rate led by strong internet adoption. Other than that, B2B customers enlarged by 1.8 percent Q-Q and 5.5 percent  Y-Y driven by our flexible and affordable digital bundle plans. 

RM Million4Q20193Q20204Q2020Q-QY-YFY2019FY 2020FY-FY
Service revenue1,4371,3741,350-1.7%-6.1%5,6445,428-3.8%
Total revenue 1,6781,5791,561-1.1%-7.0%6,2976,152-2.3%
EBITDA (before other items -boi)817786766-2.5%-6.2%3,3033,078-6.8%
EBITDA (boil) margin48.7 %49.8%49.1%-0.7pp0.4pp52.5%50.0%-2.5pp
Profit after tax343321280-12.8%-18.4%1,4331,221-14.8%

All Analysis and comparisons are based on post MFRS 16

Likewise, monthly active users for MyDigi application rose to 4.4 million on improved features and personalised rewards. Opex reduced by -4.0 percent Q-Q and -2.8 percent Y-Y, attributed to strategic channel transformation to online platforms. Additionally, Digi achieved sukuk rating of AAA/Stable/P1 by RAM Rating in December 2020, with final interim dividend of 3.6 sen per share equivalent to RM280 million. 

For this year 2021, the financial key guidance is summarised with service revenue with low single digit decline, EBITDA at medium single digit decline and Capex-to-total revenue ratio between 14.0 to 15.0 percent.

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