Digi reports full year revenue decline

23 Jan 2020

Malaysian mobile network operator (MNO) Digi has published its financial results for both the quarter and year ended 31 December 2019, claiming a ‘strong performance in growth areas, namely post-paid, internet and digital businesses’. In the fourth quarter of 2019 Digi recorded a total turnover of MYR1.678 billion (USD412 million), broadly unchanged from MYR1.674 billion a year earlier, with service revenues standing at MYR1.488 billion (4Q18: MYR1.482 billion). ‘Internet and digital’ revenue was reported to have increased 9.9% year-on-year to MYR933 million, contributing 64.9% of service revenue. However, for the full year Digi recorded total revenue of MYR6.297 billion, down from MYR6.527 billion in FY 2018.

EBITDA declined to MYR717 million in 4Q19, compared to MYR740 million in the corresponding period of 2018, while fourth-quarter net profit dropped to MYR353 million (4Q18: MYR378 million). Digi claimed these declines were attributable to ‘higher investments into driving higher customer contracts and improvements in network experience for customers’. Full year EBITDA and net profit totalled MYR2.917 billion (FY18: MYR3.033 billion) and MYR1.495 billion (MYR1.541 billion), respectively.

In operational terms, Digi reported a mobile subscriber base of 11.281 million as at 31 December 2019, down from 11.660 million a year earlier, with an increase in post-paid accesses (3.032 million, up from 2.805 million), failing to offset a drop in pre-paid users (8.249 million down from 8.855 million). 4G subscriber numbers continued to climb though, reaching 8.9 million at the end of 2019, up from 8.7 million at end-September 2019, and 7.9 million at end-2018. According to Digi, its 4G network now covers 91% of the population, while it boasts LTE-A coverage of 72%.

Malaysia, Digi Telecommunications