Digi profit declines - Mobile World Live

Digi profit declines

29 APR 2022

Malaysia-based Digi forecast service revenue to return to growth this year as more Covid-19 (coronavirus) restrictions lift and borders reopen, after it booked lower earnings in Q1.

In its earnings release, acting CEO and CMO Praveen Rajan praised Digi’s momentum in the opening months, offering a bullish outlook regarding commercial and tourist business, the latter of which is expected to boost roaming services.

Net profit dropped 10.9 per cent year-on-year to MYR236 million ($54.3 million) due mainly to a one-off tax hike. Service revenue fell 2.2 per cent to MYR1.3 billion, as a 3.9 per cent decline in prepaid sales to MYR615 million offset a 2.6 per cent increase in post-paid to MYR633 million.

Its total user base was flat at 10.2 million as post-paid additions of almost 250,000 was offset by a loss of a similar number of prepaid users.

Post-paid ARPU fell 6.2 per cent to MYR61 and prepaid 3 per cent to MYR32.

Capex dropped 45.2 per cent to MYR83 million, or 5.7 per cent of sales, due to some projects being deferred. Full-year capex is forecast at 12.8 per cent of revenue, or around the same level as 2021.

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Joseph Waring

Joseph Waring joins Mobile World Live as the Asia editor for its new Asia channel. Before joining the GSMA, Joseph was group editor for Telecom Asia for more than ten years. In addition to writing features, news and blogs, he...

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