KUALA LUMPUR: Digi.Com Bhd’s net profit eased 3.8 per cent to RM360.08 million in the fourth quarter (Q4) ended December 31, 2017 from RM374.63 million recorded last year.
In a filing to Bursa Malaysia today, the company said the lower net profit recorded for the quarter was mainly due to higher finance cost from adverse fair value changes on interest rate.
Its revenue in the same quarter decreased marginally 1.5 per cent to RM1.64 billion from RM1.67 billion.
Digi said service revenue in Q4 registered 2.5 per cent sequential growth while year-on-year decline improved to 2.7 per cent.
It said both prepaid and postpaid revenues were lifted quarter-on-quarter by stronger internet subscriptions and monetisation.
In addition, Digi also capitalised on new in-demand devices to capture higher device bundled sales for new postpaid subscriptions and contract renewals.
For the 12 months, Digi’s net profit decreased 9.6 per cent to RM1.48 billion from RM1.63 billion, while revenue eased 3.9 per cent to RM6.34 billion from RM6.59 billion.
Meanwhile, Digi said it continued to invest capital expenditure (capex) efficiently in Q4 as planned, with greater focus on network optimisation and 4G upgrades to support consistent internet experience on Digi’s 4G Plus network.
Digi aims to deliver 2018 with a sharper focus anchored on connecting its customers to what matters most.
“Our established robust 4G Plus network and solid milestones in digital transformation set a solid foundation for Digi to pursue sustainable growth opportunities in 2018.
“Although market conditions remained challenging, Digi aims to improve 2018 service revenue growth development and to sustain EBITDA (earnings before interest, taxes, depreciation and amortisation) at around 2017 level leveraging on sustainable growth, disciplined cost management and innovating on operational efficiencies,” it said.
Digi said it remains committed to investing for growth opportunities and aspire to deliver efficient capex between 10 per cent and 12 per cent of service revenue.
Digi has declared a fourth interim single-tier dividend of 4.6 sen per ordinary share for the financial year ended December 31, 2017.
The dividend will be paid on March 23, 2018.