Steady performance in Q4 supported by solid EBITDA and PAT

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Steady performance in Q4 supported by solid EBITDA and PAT
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January 22, 2017
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https://digi.com.my/media/articleURLhereWhichCanbeReallyLong
  • Steady sequential Q4 from solid postpaid growth and strong operational performance
  • Delivered guided financial performance with strong EBITDA of RM741 million at 44% margin
  • Normalised PAT registered solid growth of 7.3% to RM410 million
  • Dividend of 4.8 sen per share equivalent to almost 100% payout or RM373 million

SUBANG JAYA, 23 January 2017 - Digi.Com Berhad (Digi) today reported fourth quarter and full-year 2016 results which showed continued postpaid customer momentum, the highest recorded growth in the last eight quarters with solid net adds, driving earnings growth. The company closed Q42016 with a 13.6% y-on-y postpaid revenue growth, delivering steady service revenue of RM1.56 billion. FY2016 service revenue stood at RM6.23 billion with an EBITDA of RM2,955 million or 45% margin, supported by 12.3 million subscribers on its network.

Digi’s CEO Albern Murty said, "This has been a year of strong execution for Digi. We have kept focused on delivering excellent, quality internet experiences for our customers on mobile while remaining solid in our operational performance.

"Customers are increasingly recognising the quality of our 4G plus network, internet and digital services, benefiting from the significant investments in 4G LTE, 4G+, fibre and digitisation efforts we have made over the year. This has led to strong growth in data usage across our customer base. Looking forward, the internet and smart devices will become an even bigger part of our customers’ everyday life. And our commitment as their digital life partner is to continue investing to deliver quality service excellence, and innovations in digital content and services."

Resilient Q4 and FY2016

RM million4Q163Q16Q-o-Q4Q15Y-o-YFY16FY15Service revenue1,555 1,554 0.1% 1,587 (2.0%) 6,226 6,348 EBITDA 741 775 (4.4%) 701 5.7% 2,955 2,983 EBITDA margin44% 48% (3.5pp) 41% 3.7pp 45% 43% Normalised PAT410 438 (6.4%) 382 7.3% 1,668 1,722

Key Highlights
Year-on-Year (Q4 2016 v. Q4 2015)

  • Service revenue resilient at RM1,555 million, up 0.1% q-on-q while y-on-y decline stemmed to 2.0%
  • Postpaid revenue grew 13.6% to RM511 million, amped by 14.1% postpaid subscriber growth
  • Prepaid revenue moderated by 8.2% to RM1,044 million over a relatively flat 10.2 million prepaid base
  • Internet revenue up 15.1% over an expanded 8.1 million internet subscriber base
  • EBITDA up 5.7% to RM741 million at 44% margin
  • Normalised Profit After Tax (PAT) registered solid growth of 7.3% to RM410 million
  • Final dividend of 4.8 sen per share or RM373 million, delivering FY2016 dividends per share of 20.9 sen

Innovating mobile to deliver excellent service and digital experiences for customers on the fastest-growing and widest 4G+ network in Malaysia:

  • RM780 million in Capex to improve overall network coverage, density and performance in 2016.
  • Accelerated expansion of Malaysia’s widest 4G+ (LTE Advanced or LTE-A) network that now covers 41% of the population and solid 4G LTE footprint of 85%, supported by 7,600km of fibre network.
  • Introduced VoLTE service, a next-gen 4G innovation for customers to enjoy better call experiences through HD quality audio, faster call connections and simultaneous use of data.
  • Stepping up customer experience through digital experiences for always-on video and music streaming, gaming, internet for sharing and for daily and unlimited weekends with Digi Postpaid, Digi Live and Best Prepaid.
  • Increased digital customer interactions across self-care platform MyDigi, now serving 1.5 million customers, frontline retail engagements with Mobile Sales Agent app completing new registrations within 3 minutes and a new digital retail concept store to be rolled out in 2017.
  • This continued focus on customers and innovation has seen growing confidence in Digi’s product and service offerings: 81% growth of LTE subscribers to 4.2 million in the year, and close to 600,000 new internet subscribers with significant growth in their data usage. Average data usage per user on prepaid has increased 0.9 times and 1.4 times on postpaid compared to last year.

For more information, the detailed quarterly and full-year reports are available here. To get inspired by Digi’s ambition to be your digital life partner, watch this video.