KUALA LUMPUR: Digi.Com Bhd’s (Digi) net profit increased 7.1 per cent to RM384.34 million in the second quarter (Q2) ended June 30, 2018 from RM358.89 million.
In a filing to Bursa Malaysia, Digi said the increase in net profit was due to higher service revenue and efficient cost management.
Its revenue in Q2 increased 4.2 per cent to RM1.62 billion from RM1.55 billion, anchored on postpaid revenue growth of 15.5 per cent and prepaid internet revenue growth of 20.9 per cent.
Digi said during the quarter, the group continued to register positive take-ups for Digi Postpaid and Postpaid Family plans including encouraging subscriptions for the high value plans enabled with borderless roaming proposition from existing customers.
It said the increased demand for plan upgrades and prepaid to postpaid conversions was supported by sharper focus on base management, leveraging on data insights and digitisation capabilities.
“At the same time, our entry level postpaid plans alongside affordable and worry-free 4G bundles continued to garner strong demand and supported Digi’s growing postpaid subscriber base,” it said.
Digi said postpaid turned in a revenue growth of 15.5 per cent year-on-year and 4.7 per cent quarter-on-quarter to reach RM619 million while postpaid internet revenue rose 32.5 per cent year-on-year and 8.7 per cent quarter-on-quarter to RM400 million.
ARPU (average revenue per user) moderated to RM76 on the back of stronger postpaid subscriber base of 2.7 million, fuelled by increased entry level postpaid subscriptions from continued momentum from prepaid to postpaid conversions, it said.
For the six months, Digi’s net profit increased 5.3 per cent to RM770.45 million from RM732 million, while revenue surged four per cent to RM3.25 billion from RM3.13 billion.
Digi said with a solid first half 2018 performance, the group’s focus for the next six months will be to step up on growth and efficiencies by strong execution of 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.
It said despite continued market challenges ahead, it will continue to aim towards improving 2018 service revenue growth development, sustaining EBITDA (earnings before interest, taxes, depreciation, and amortisation margin around 46 to 47 per cent and delivering efficient capital expenditure between 10 to 12 per cent of service revenue.
Digi’s board declared the second interim dividend of 4.9 sen or RM381 million for the quarter.