KUALA LUMPUR: Digi.com Bhd's net profit eased 2.8 per cent to RM279.91 million in the second quarter (Q2) ended June 30, 2021, from RM288.04 million recorded in the same period a year ago.
In an exchange filing today, the telecommunication company said higher earnings was attributed to lower net finance charges.
Its Q2 revenue increased 11.7 per cent to RM1.62 billion from RM1.45 billion on the back of better performance of mobile segment and device sales, higher internet and digital revenue, steady commercial momentum and sharp execution across all segments.
For the first half of 2021, Digi's net profit decreased 12.1 per cent to RM544.74 million from RM620.03 million, while revenue rose 5.3 per cent to RM3.17 billion from RM3.01 billion posted previously.
Chief executive officer Albern Murty said Digi remains committed to supporting the connectivity needs of society in these times, intensifying its efforts to provide a consistent network experience.
"This is delivered on the National Digital Network (Jendela) ambitions, bringing to market more innovative and affordable plans to support consumers.
"We also continue to step up our vigilance on the safety and health of our employees, partners, and in particular our retail and network frontliners, to continue serving our customers safely in our stores and digital channels," he said in a separate statement today.
Digi has signed a conditional share purchase agreement with Axiata Group Bhd as part of the prior-announced proposed merger of telecommunications operations Celcom Axiata Bhd and Digi Telecommunications Sdn Bhd on June 21, 2021.
"While we prepare for the next phases of the proposed merger to create a leading telecommunication service provider in Malaysia, the completion of the proposed transaction will be subject to approval by all shareholders, receipt of regulatory approvals, and other customary terms and conditions."
Operationally, Digi said it remains steadfast on driving businesses as usual for the remainder of 2021 on delivering near-term priorities, build on robust financials, organisational agility, and our trusted brand and responsible business standards.
Digi has reaffirmed the financial year ending December 31, 2021 (FY21) guidance of low single-digit decline for service revenue, medium single-digit decline for earnings before interest taxes depreciation and amortisation (EBITDA) and capital expenditure-to-total revenue ratio of 14 per cent to 15.0 per cent, respectively.
The company has also declared a second interim tax-exempt dividend of 3.6 sen per share for FY21, payable on September 24 this year.