Digi.com sees 7.1% rise in net profit in Q2, declares 4.9 sen dividend

PETALING JAYA: Digi.com Bhd's net profit for the second quarter (Q2) ended June 30, 2018 grew 7.1% to RM384.34 million from RM358.89 million a year ago on the back of stronger earnings before interest, tax, depreciation and amortisation (ebitda), lower capital expenditure (capex) spending and higher operation cash flow.

Revenue for the quarter under review expanded to RM1.62 billion from RM1.55 billion.

The group has proposed to declare an interim dividend of 4.9 sen for the quarter under review.

For the first six months of the financial year, Digi's net profit went down 5.3% to RM770.45 milliom compared with RM732 million last year, while revenue increased to RM3.25 billion from RM3.13 billion.

Digi told Bursa Malaysia that its service revenue increased 2.1% to RM1.48 billion in Q2, underpinned by solid postpaid and internet revenue growth.

Taking cue from its strong performance in the first half of the financial year, Digi's focus for the next six months, will be on stepping up growth and efficiencies by executing strategies in focus areas of growth across postpaid and prepaid; leveraging on data driven-insights and customer segmentation; and delivering on cost agenda on a platform of sustainable and efficient cost structure.

“Albeit with continued market challenges ahead in the second half of 2018, Digi will continue to aim towards improving 2018 service revenue growth development, sustaining ebitda margin around 46%-47% and delivering efficient capex between 10%-12% of service revenue.”

The stock fell 2 sen or 0.5% to close at RM4.16 on 2.3 million shares traded.

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