Digi has recorded an overall revenue of RM1,441 million, attributing its performance to solid postpaid and data growth for its financial year that ended 31 March 2019. The telco’s earnings before interest, tax, depreciation and amortisation (EBITDA) stood at RM723 million while ops cash flow was at RM555 million, according to Digi is fuelled by its traction on financial management.
The company’s internet customer base stood healthy at 9.0 million, with customers using 10.2GB of data monthly, driving data traffic volumes up by 51% year-on-year the report said. Meanwhile, internet revenue increased 13.3% year-on-year to RM862 million as an effect of higher data usage across segments. Digi noted a 81.4% smartphone base and 21.0 million upsell transactions on its MyDigi app.
Apart from postpaid revenue, Digi revealed that its prepaid revenue moderated to RM769 million while its prepaid subscriber mix shifted to 52% internet as compared to a 48% voice base setting the foundation for sustainable growth for the future. The telco’s operating expenses reduced 0.4% year-on-year from efficiency initiatives.
Digi’s CEO Albern Murty said the telco is focused on building a strong postpaid portfolio and wide range of internet offerings to give customers full control over their digital experience. It has also made strategic decisions to shift the subscriber mix and channel strategy for its prepaid business to drive growth from internet uptake and reduce dependency on legacy voice services. Despite market competition, Murty said the telco will be positioned for long-term growth by improving prepaid sustainability, driving further postpaid growth, investing in its network, and creating digital platforms to add value for customers while executing a disciplined strategy focused on growth, efficiency and digital transformation.
In a bid to a make stronger inroads into Malaysia’s postpaid market and increase internet adoption on its network, the company invested RM168 million capex for IT and network capacity upgrades, fibre network expansion, and deployment of network function virtualisation. In its first quarter of the year, the company added 50,000 customers to its postpaid base, now totalling to 2.9 million customers. Its postpaid revenue grew by 13.5% year-on-year to RM671 million while postpaid internet revenue rose 25.3% year-on-year to RM461 million. According to the financial report, Digi’s postpaid average revenue per user remained consistent at RM71 supported by plan upgrades and increase in average revenue per user from existing customers while its entry-level postpaid base strengthened.
Just last month, Digi’s customers faced service interruption and took to Twitter to express their frustrations. The telco then acknowledged on its website and Twitter account of the “network connectivity issues” faced by subscribers and that a team was working to solve it. Digi said that its technical teams have addressed within an hour and fixed the issue, recovering all services.