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Digi has 11.8 million subscribers as of 2Q15, 4G LTE coverage at 35%

Digi reported its second quarter financial results today. As of 2Q15, Digi has a total of 11.8 million subscribers.

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In Q2, Digi added a total of 124k subscribers in including 13k new postpaid subscribers and 111k new prepaid. The number of “Smartphones and Devices” sold in the quarter is higher at 281k.

There are now close to 10 million prepaid subscribers and 1.8 million postpaid subscribers. Postpaid ARPU is at RM82 while prepaid ARPU is RM38 in Q2.

In terms of Internet users, there are close to 5.5 million prepaid users and 1.4 million postpaid, making up a total of 6.8 million subscribers or 57.9%. Smartphone penetration in the network is at 57.1%.

As for the Digi network, the Telco said it invested RM200 million to “boost data network coverage and quality” in the quarter. Nationwide 4G LTE population coverage is approximately 35% while 3G coverage stood at 86.6%. “A significant focus has also been placed on delivering quality experience on its network primarily with the overlay of 1800 Mhz and 2600 Mhz spectrum for LTE to enable more customers to enjoy access on the LTE-enabled devices they currently own, in addition to boosting capacity and improving indoor coverage. ” the Telco said.

“We understand customers demand reliable and consistent experiences on our network, and this has been our core focus,” said Digi’s Chief Executive Officer (CEO) Albern Murty. “Over the years we’ve ploughed significant investments into building a brand new network, and in rapidly rolling out our high speed network in more areas around Malaysia while keeping a strong focus on quality of service to ensure more customers can enjoy the best mobile internet experience.

“The improved quality on our network forms the bedrock that will fuel adoption and is the catalyst for future growth. The strength of our network today combined with our dynamic backend system that enables activation of tailored plans allows us to bring relevant service innovation affordably to our growing data-loving customers. At the same time, we’re also aggressively bringing our services to the unconnected looking for consistent internet experience at great value especially in new areas, with our far-reaching coverage today.”

For the quarter under review, service revenue rose 1.3% to RM1,589 million year-on-year (Q2 2014: RM1,588 million) on the back of effects from the implementation of Goods and Services Tax (GST) and intense competition. Earnings before interest, tax, depreciation and amortisation (EBITDA) moderated to RM788 million from RM795 million from a year ago. Profit after Tax (PAT) tapered to RM464 million during the quarter (Q2 2014: RM499 million) as a result of moderated EBITDA and progressively higher depreciation and amortisation charges as well as higher tax expenses.

“For the second half of the year, we will build on the solid 4G LTE momentum with an ambition to continue expanding our reach to more areas nationwide to ensure even more customers enjoy quality experience on our network. We will also continue to strengthen our products and services value proposition, and introduce new digital innovation to encourage adoption and stimulate usage on our high-speed network, and do this while we deepen our customer relationship towards delivering sustainable growth”, Albern added.

The company announced of a second interim tax exempt dividend of 5.9 sen per ordinary share equivalent to RM459 million or 99% payout ratio to shareholders on 4 September 2015.

About Kugan

Kugan is the founder of MalaysianWireless. He has been observing the mobile industry since 2003. Connect with him on Twitter: @scamboy