Digi.Com has witnessed a 0.7% year-on-year (yoy) growth in service revenue to RM1,483 million in the first quarter of this year (Q1 18) ended 13 April 2018. This can be attributed to its "solid" internet revenue growth within the quarter, due its postpaid performance and stronger data monetisation of its prepaid business.
According to Digi’s CEO Albern Murty (pictured), the company's "sharper focus" in delivering innovative range of products, services and solutions enabled it to provide better value and experience in meeting its customers’ internet needs.
“This is supported by the sound investments we have made to accelerate the strategic deployment of our spectrum portfolio to improve the quality, performance and capacity of our 4G Plus network, while cost discipline and operational efficiencies have and will continue to be part of the way we create value," Murty added.
According to the financial statement, strong demand for Digi's prepaid internet passes led to higher internet usage among prepaid subscribers. As such, internet revenue jumped 17.3% yoy to RM393 million, forming 44.1% of prepaid revenue.
Among the list of prepaid initiatives by Digi include internet passes with enriched data quotas to monetise the network during non-peak hours, as well as affordable bite-sized Cili Padi internet passes. On the postpaid front, Digi leveraged on the "Thank You" campaign to drive new postpaid acquisitions, and stepped up on monetisation from its existing user base via through an all-day internet GBoost upgrade.
Operating expenditure (opex) for Q1 18 improved to 33.0%, aided by operational efficiency initiatives achieved across sales and marketing costs, as well as network related opex. According to its financial statement, Digi will continue to focus on three core structure opex initiatives to boost efficiencies - digitisation of core business, digital customer interactions and operating model shifts. It's MyDigi app also saw 2.5 million users with upsell transactions on the app totalling 19.2 million for Q1 18.
A+M has reached out to Digi for additional details.
The company aims to accelerate consumer postpaid and enterprise revenue growth, as well as growth in Malaysian subscriber base in 2018. It also plans to increase internet adoption and usage among migrant subscribers, and monetise data and growth internet revenue. Digi added that it is "stepping in the right direction" towards the digitisation of its core business and digital customer interactions, and is committed to driving sustainable growth from core telco revenue streams and performance resilience.
Last year, Digi appointed former chief executive officer of Digi.Com, Lars-Ake Norling as its chairman for both Digi and its parent Digi.Com. He succeeded Morten Karlsen Sørby who resigned from the role he held since 2015.