Digi today announced its FY2022 first quarter results with steady performance. The company also highlights its priority in delivering improved customer experience through quality network experience and enhanced products and services.
The telco demonstrates strength in its network quality and availability, catering to higher demand for data as average consumption increased to 21GB per user, with 99.8% data traffic on 4G. Average download speeds improved to 42.2Mbps from 38.9Mbps in the last quarter, underscoring its commitment in strengthening connectivity and internet experience for its customers.
In addition, Digi further expanded its 4G LTE and LTE-A network coverage, which now serves 94.0% and
76.5% of populated areas nationwide respectively, alongside an extensive fibre network of 10,316KM across the nation.
The company saw a 249K Y-Y net additions of Postpaid subscribers to a total of 3.34 million, resulting from Digi’s enhanced best-value product offerings anchored on high-speed internet and smart bundling. The company also continued to focus on acquiring higher value Prepaid subscribers despite narrowing its base by -258K Y-Y to 6.9 million. Blended ARPU remained resilient at RM42.
Its Fibre segment maintained an upward trend with almost five times more subscribers Y-Y through strategic upselling activities, while its Business (B2B) subscriber base enlarged by 16.3% Y-Y from supporting both small and medium enterprise (SME) and large enterprise customers with digitalisation solutions, strengthening the business community’s trust in the Digi Business brand and services.
Its sustained growth momentum in its core segments, driven by network quality improvement efforts and sharp execution of its business strategies.
“We’ve seen good growth momentum to start the year. With more Covid-19 related restrictions lifted and borders reopening, we expect to see an increase in commercial and tourism activities that would drive demand for roaming services. We continue to prioritise efforts to deliver to the expectations of our business and consumer customers from all segments – from providing quality connectivity and better digital experiences, offering products with greater value and flexibility, to deepening our responsible business commitments as we continue building a brand that customers have come to trust,” Digi’s Acting Chief Executive Officer and Chief Marketing Officer Praveen Rajan said.
Steady Q1 2022, on track to achieving financial guidance for the year. Digi recorded service revenue of RM1.3 billion in the first quarter of 2022, a decline of -2.2% Y-Y, largely resulted from softer commercial momentum in Prepaid and lower digital revenue contributions. Excluding the lower margin digital segment, the decline in service revenue narrowed marginally by -0.7% Y-Y, indicating steady progress towards the company’s ambition of returning to service revenue growth in 2022.
The highlights of its financial standing are:
The company’s total revenue reached RM1.52 billion, a reduction of -1.8% Y-Y due to normal seasonal patterns from higher year-end device sale; Postpaid revenue strengthened by 2.6% Y-Y to RM633 million driven by continued subscription growth and effective churn management; Prepaid revenue declined by -3.9% Y-Y and -1.6% Q-Q to RM615 million as a result of weaker acquisition and demand for internet passes, and lower non-internet usages ; EBITDA delivered at RM741 million or margin of 48.7%, representing a marginal growth both Y-Y and Q-Q, attributed to continuous modernisation efforts ; Profit after tax (PAT) was down -10.9% Y-Y due to temporary tax rate increase from the implementation of Cukai Makmur in FY2022.
