Malaysia-based operator Digi recorded continued weakness in profitability during Q3, but made marginal revenue gains on increases in prepaid tariffs and handset sales.

Net profit dropped 9.8 per cent year-on-year to MYR321 million ($77.3 million), while total revenue rose 1 per cent to MYR1.58 billion.

CEO Albern Murty said the company navigated well through a difficult time to “deliver a better quarter”, noting it expanded its range of value-driven offerings, launched fibre broadband nationwide, and modernised it distribution and network capabilities.

Mobile service revenue dipped 2.8 per cent to MYR1.37 billion, with post-paid falling 6 per cent to MYR626 million and prepaid flat at MYR748 million. Devices sales jumped 38 per cent to MYR205 million.

Murty said the company remains focused on financial resilience by prioritising investments in strategic areas to improve affordability for customers and drive growth.

Internet and digital revenue rose 9.8 per cent to MYR1 billion, accounting for 73.1 per cent of service revenue compared with 64.6 per cent in Q3 2019. Average monthly data usage per user of 17.4GB was 34.8 per cent higher.

Its overall subscriber base decreased 6 per cent to 10.7 million. Prepaid ARPU rose 14 per cent to MPY33 and post-paid fell 6 per cent to MYR67.

Digi predicted a low to medium single-digit decline in full year service revenue, with capex expected to remain at the 2019 level of MYR548 million.

In the opening nine months, capex fell 9 per cent year-on-year to MPY498 million.