SUBANG JAYA, 18 October 2019 – Digi.com Berhad (Digi) recorded stronger quarter-on-quarter performance in Q3 2019, delivering a 0.9% service revenue1growth at RM1,464 million, while margins remain healthy as EBITDA stands at RM725 million or 46% margin.The company continues to be geared for profitable growth, underlined by a disciplined focus on operational efficiency, to surpass challenging industry developments.
The company’s performance in the quarter reflects its persistent drive to deliver quality network experience, and more internet access options on mobile, in the home and on WiFi, across more customer segments. Digi’s network now connects 11.3 million customers in populated areas nationwide with a footprint of 4G LTE: 90%, LTE-A: 70% coverage and 9,200km of fibre network.
These strategic investments to expand network capacity and coverage have activated data growth opportunities for the quarter. Internet revenues increased 10.8% y-o-y to 64.0% of service revenue or RM905 million, where y-o-y postpaid and prepaid internet revenues climbed 19.1% and 2.0% respectively. Data traffic volumes surged 49% y-o-y, across a larger base of 9.4 million internet customers using an average 12.9GB of data monthly per customer.
In line with these investments, the company is also actively collaborating with several partners to trial emerging technologies such as 5G, IoT and AI. Digi recently opened its 5G OpenLab in Cyberjaya, a collaborative space for academics, innovators, developers and businesses to perform live trials on its next-generation 5G network. The lab serves to crowd source relevant use cases and explore technical network requirements needed to work towards a faster, more accurate 5G deployment in Malaysia.This will enable Malaysia to fully leverage on the opportunities of 5G, and fuel future growth for the progress of the country.
Digi’s CEO Albern Murty said, “We have stayed focused on delivering our strategy this quarter, and see that our efforts connect more Malaysians on our services. We will be persistent in providing affordable,widespread connectivity to more people and businesses while we run our business efficiently.Staying focused on introducing innovative products to market and making inroads into the B2B segment as part of our long-term growth.
Stronger Q3 2019 performance
RM million
3Q18
2Q19
3Q19
Q-o-Q
Y-o-Y
9M18
9M19
9M-9M
Total revenue
1,600
1,509
1,549
0.8%
-2.4%
4,835
4,620
-4.8%
Service revenue1
1,475
1,451
1,464
0.9%
-0.7%
4,442
4,356
-1.9%
EBITDA
750
752
725
-3.6%
-3.3%
2,293
2,200
-4.1%
EBITDA margin
47%
49%
46%
-2.1pp
-0.5pp
47%
48%
0.4pp
PAT
393
414
362
-12.6%
-7.9%
1,163
1,142
-1.8%
1Revenue ex- contract asset amortisation. All analysis and comparisons are based on post MFRS 9 and MFRS 15.
Key Financial Highlights (Y-o-Y)
Connecting Malaysians with more affordable options and a stronger network nationwide in Q3 2019:
For more on Digi’s Q3 2019 performance, visit www.digi.com.my/investors.