Digi.com Berhad (Digi) reported its first quarter 2020 (1Q20) financial results last week. The Telco has 11.01 million mobile subscriptions consuming an average 14.5GB Internet data monthly in 1Q20. In comparison, in 4Q19, Digi had 11.28 million subscriptions consuming an average 13.8GB monthly Internet.
It lost 272k mobile subscriptions between January, February and March 2020.
There are 7.95 million prepaid subscriptions including 6.42 million prepaid Internet users. The Telco lost some 301k prepaid subscriptions between January to March 2020. It had 8.25 million prepaid subscriptions as of December 2019. ARPU for Prepaid remains unchanged at RM30.
Digi disclosed that some 1.53 million prepaid customers don’t use mobile Internet however it did not share the same numbers for postpaid customers. In 4Q19, some 294k Postpaid subscribers did not use Digi mobile Internet services.
There are 3.06 million postpaid subscriptions as of 1Q20. The Telco added 29k new postpaid subscribers between January, February and March 2020. ARPU for postpaid dropped (-RM3) to RM69 in the recent financial quarter. Digi had 3.03 million postpaid subscribers as of December 2019.
Digi said it now has 9.19 million Internet subscribers, down from 9.4 million it had as of 4Q19. Its 4G Internet subscribers also dropped to 8.8 million in 1Q20 from 8.9 million in 4Q19. It did not reveal the subscribers base of its fibre broadband customers.
4G LTE human population coverage improved to 91% (+2%) while LTE-A coverage increased by 6% to 73% nationwide. Based on a Network Net Promoter Score (NPS) survey from over 30,000 customers (out of 11.01 million), Digi said it registered an uplift of +4pp YoY and +2pp QoQ on customers’ confidence and satisfaction on its network nationwide.
The MyDigi self service app on mobile and website recorded 21.4 million upsell transactions with 4.0 million monthly active users.
Key Financial Highlights (Y-o-Y), according to Digi:
|Service revenue (excluding interconnect)
- Service revenue grew 0.7% y-o-y to RM1,366 million, supported by internet and digital revenue growth
- Internet and digital revenue rose 13.3% y-o-y to RM977 million or 70% of service revenue
- Digi Postpaid revenue grew 5.5% y-o-y to RM656 million over a base of 3.1 million subscribers, attributed to healthy acquisitions, pre-to-post conversions and plan upgrades
- Prepaid internet and digital revenue increased 8.2% y-o-y to RM434 million
- OPEX sustained at RM411 million on the back of continued network investments
- EBITDA at RM756 million or 49% margin while Profit After Tax (PAT) was RM332 million or 21% margin
- Ops cash flow traced to RM617 million or 40% margin having invested RM139 million capex for network enhancements
- Net debt to EBITDA ratio healthy at 1.5 times while conventional debt over total assets was at 9%, well-within the Shariah threshold
- First interim dividend per share of 4.2 sen or RM327 million, payable to shareholders on 26 June 2020
- See slower revenue development post 18 March due to Covid-19 related impact, such as travel, roaming, and closure of stores and dealer touchpoints.
Digi’s CEO Albern Murty said, “We continued the good momentum from Q4 2019 to ensure we were able to quickly adapt to the growing Covid-19 concern, leveraging our digital capabilities and resilient organisational culture. Our first quarter results also reflect the sustainable revenue portfolio of our business. Moving forward, we will continue to maintain a balance of responsible financial management together with focused investments on network and digital capabilities to stay resilient, while we address the challenges from Covid-19.”