Digi posts RM375 million Q4 net profit, declares 4.8 sen dividend
Published on: Tuesday, January 24, 2017
Kuala Lumpur: Digi.Com Bhd posted a net profit of RM374.62mil in the fourth quarter ended Dec 31, 2016 compared with RM382.36mil a year ago.The telco saw its revenue declined marginally to RM1.66bil in the fourth quarter against RM1.72bil previously. Digi's board of directors declared fourth interim dividend of 4.8 sen per share equivalent to RM373mil, payable to shareholders on March 31, 2017. This summed up to a total of 20.9 sen dividend per share for the full year, equivalent to RM1,625mil.
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For the full financial year ended Dec 31, 2016, Digi posted a net profit of RM1.63bil, or earnings per share of 21 sen on revenue of RM6.59bil. In a statement, Digi said it closed Q42016 with a 13.6pc year-on-year postpaid revenue growth, delivering steady service revenue of RM1.56bil. FY2016 service revenue stood at RM6.23bil with an earnings before interest, tax, depreciation and amostisation (Ebitda) of RM2,955mil or 45pc margin, supported by 12.3 million subscribers on its network."This has been a year of strong execution for Digi. We have kept focused on delivering excellent, quality internet experiences for our customers on mobile while remaining solid in our operational performance," CEO Albern Murty said in the statement. "Customers are increasingly recognising the quality of our 4G plus network, internet and digital services, benefiting from the significant investments in 4G LTE, 4G+, fibre and digitisation efforts we have made over the year.
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This has led to strong growth in data usage across our customer base. "Looking forward, the internet and smart devices will become an even bigger part of our customers' everyday life.
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And our commitment as their digital life partner is to continue investing to deliver quality service excellence, and innovations in digital content and services," he added. In its management discussion and analysis, Digi said summing up the four quarters, Digi delivered 2016 financial performance within its guidance and at higher Ebitda margin of 45pc from 43pc a year ago.During the quarter, Digi invested the remaining RM240mil from its planned capital expenditure to accelerate 4G+ network expansions with improved capacity and quality as well as commenced network readiness works for the newly allocated 900Mhz and 1800Mhz spectrum bands. Digi said its capex for the year reflected an efficient spending of RM780mil or 12.5pc of service revenue with robust 4G+ network coverage nationwide and infrastructure capabilities delivered as planned alongside with savings identified in 2Q16 from the comprehensive fixed asset register review undertaken as part of good governance. The telco said its key priorities in 2017 would focus on relentlessly growing postpaid and Malaysian prepaid opportunities while defending core service revenue streams.Stay up-to-date by following Daily Express’s Telegram channel.
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