Digi publishes 2Q20 results; inks wholesale deal with TM

14 Jul 2020

Malaysia’s Digi Telecommunications has published its financial results for the quarter ended 30 June 2020, reporting a total turnover of MYR1.452 billion (USD340 million), down from MYR1.549 billion in the corresponding period a year earlier. Service revenue declined by 6.1% year-on-year, to MYR1.317 billion, with Digi citing the impact on ‘roaming revenues, free connectivity to support customers, and decline in traditional voice usage’ during the Movement Control Order (MCO) put in place to combat the COVID-19 pandemic. Digi’s Q2 2020 EBITDA totalled MYR770 million, down from MYR846 million a year earlier, while its profit after tax stood at MYR288 million (2Q19: MYR392 million).

In operational terms, Digi had 10.623 million mobile subscribers on its books at 30 June 2020, down from 11.364 million a year earlier. It attributed the decline to ‘a decrease in non-active users, lesser on-ground activities on our channels, leading to involuntary churn, no inbound subscriptions and continued SIM consolidation.’

In separate but related news, meanwhile, Digi and Telekom Malaysia’s wholesale arm TM WHOLESALE have announced a ‘collaboration on nationwide broadband access service coverage in line with Digi’s commitment to provide connectivity options to more customers’. In a press release Telekom Malaysia noted that it will provide Digi with Layer 3 High Speed Broadband (HSBB) Network Service, enabling the latter provider to extend its footprint to more areas across the country including Sabah and Sarawak, by leveraging the incumbent’s fibre-based infrastructure.

Commenting on the deal, Digi’s Chief Marketing Officer, Loh Keh Jiat, said: ‘This collaboration with TM will enable Digi to connect an additional three million households across the country with fibre internet services, providing more customers the option to enjoy total connectivity experience at home and on-the-go with us.’

Malaysia, Digi Telecommunications, Telekom Malaysia