Track services

Digi on track to return to service revenue growth

KUALA LUMPUR: Announcement of its financial performance for the first quarter ended March 31, 2022, Digi.com Bhd said it remains on track to return to service revenue growth as it focuses on higher-value prepaid subscribers and grows its postpaid subscription base.

For the quarter under review, the telecom operator reported a 3.9% year-on-year decline in prepaid revenue, which contributed to an overall 2.2% year-on-year decline in services revenue at 1, RM31 billion.

However, postpaid revenue, which grew 2.6% year-over-year on continued subscription growth and effective churn management, helped partially offset the decline in service revenue.

“Excluding the low-margin digital segment, the decline in services revenue narrowed slightly by 0.7% year-on-year, indicating continued progress towards the company’s ambition to return to growth in services revenue in 2022,” Digi said in a statement.

Digi saw an increase of 249,000 postpaid subscribers to a total of 3.34 million, while prepaid subscribers decreased by 258,000 to 6.9 million for a blended average revenue per user of RM42 in 1Q22.

For the quarter under review, Digi recorded a net profit of RM236.15 million, down 10.9% from RM264.82 million in the prior year quarter due to a temporary rate increase. tax resulting from the implementation of the prosperity tax.

Overall revenue was RM1.52 billion, down 1.8% year-on-year (year-on-year), due to normal seasonal trends resulting from higher year-end aircraft sales.

The Board of Directors has declared a first interim dividend of 2.9 sen per share, due May 30, 2022 and payable June 24, 2022.

“With the lifting of more Covid-19 related restrictions and the reopening of borders, we expect an increase in business and tourism activities which would drive demand for roaming services.

“We continue to prioritize efforts to meet the expectations of our business and consumer customers across all segments – from delivering quality connectivity and better digital experiences, to offering products with greater value and flexibility. , to deepening our responsible business commitments as we continue to build a brand that customers have come to trust,” said Digi Interim CEO and Chief Marketing Officer Praveen Rajan.