Digi reported its Second Quarter 2018 (2Q18) financial results last week. There are now 11.66 million Digi mobile subscribers (vs 11.76 million in 1Q18).
From 9.19 million mobile prepaid subscribers it had in 1Q18, the number has now dropped to 9 million in 2Q18. Prepaid ARPU remains unchanged at RM32.
Digi lost 182k prepaid subscribers in the latest quarter. The Telco said that the drop in prepaid subscribers was due to prepaid to postpaid conversions however Digi only added 84k new postpaid subscribers, less than half of the prepaid subscribers it lost.
Total mobile postpaid subscribers now stand at 2.66 million (vs 2.58 million in 1Q18). Postpaid ARPU was at RM76 (RM77 in 1Q18).
About 8.76 million subscribers (75.1%) are using mobile Internet of which 7.1 million are on 4G LTE. Digi Internet subscriber consumed an average 8.2GB/month in 2Q18. Digi said 76.1% of its customers are using a smartphone. It sold 116k devices in 2Q18 (vs 127k in 1Q18).
The self-serve MyDigi app recorded upsell transactions of 20.9 million, with over 2.6 million monthly active users now.
Digi’s 4G LTE network now covers 89% of the population, LTE-A at 58%.
Q2 2018 Financial, according to Digi:
| RM million | 2Q18 | 1Q18 | Q-o-Q | Y-o-Y |
| Service revenue | 1,484 | 1,483 | 0.1% | 2.1% |
| EBITDA | 743 | 741 | 0.3% | 3.6% |
| EBITDA margin | 47% | 46% | 0.5pp | 0.6pp |
| PAT | 359 | 352 | 2.0% | 0.0% |
- Service revenue grew 2.1% y-o-y to RM1,484 million anchored by solid postpaid and internet revenue growth
- Internet revenue increased 26.4% y-o-y to RM805 million over an 8.8 million active internet subscriber base, each using an average 8.2GB of data a month
- Postpaid revenue grew 15.5% y-o-y to RM619 million supported by a stronger postpaid base
- Prepaid revenue trimmed 5.7% y-o-y to RM865 million with yearly and sequential decline narrowing due to stronger prepaid internet revenues despite continued levelling of legacy prepaid revenues
- OPEX to service revenue stood at 32.2% aided by digitisation capabilities and operational efficiencies
- Earnings before interest, tax, depreciation and amortisation (EBITDA) rose 3.6% y-o-y to RM743 million at 47% margin
- Profit After Tax (PAT) flat y-o-y at RM359 million with PAT margin at 23%
- Ops cash flow remained healthy at RM596 million or 38% margin, from stronger EBITDA
- Net debt to EBITDA ratio remained healthy at 0.8 times while conventional debt over total assets remained steady at 21%, well within the Shariah threshold
- Post MFRS 15 adoption, announced healthy second interim dividend of 4.9 sen per share or RM381 million, payable to shareholders on 28 September 2018
Digi’s CEO Albern Murty said, “We have maintained good momentum in the first half of the year, contributed by a disciplined cost focus, investing in areas with better margins and growing data usage in our base. Our digitisation efforts have given us valuable insights to better sell and serve various customer segments to easily access the internet the way they want. Our primary focus is to continue to provide our customers with quality digital experiences over a consistent network, and to do this in a sustainable manner.”
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