KUALA LUMPUR: Digi.Com Bhd registered a lower net profit in the fourth quarter ended December 31, 2016, weighed down by weaker prepaid growth and industry headwinds.
In the fourth quarter, Digi’s net profit eased two per cent to RM374.63 million from RM382.36 million.
“As part of the tactical campaign to drive internet adoption and usage among the prepaid subscribers, Digi introduced 50 per cent more quota on its monthly internet passes and affordable daily digital services passes including unlimited SD (standard definition) video streaming option for RM1 per day.
“The favourable take-up for these new plans especially Digi Prepaid LiVE and internet passes spurred stronger prepaid internet subscribers and higher data usage on Digi’s cutting-edge 4G+ network capacity and efficiency capabilities.
“However, prepaid growth remained challenging from persistent intense competition and deteriorating market conditions,” Digi said in a filing to Bursa Malaysia today.
Its revenue in the same quarter decreased 3.2 per cent to RM1.67 billion from RM1.72 billion.
For the full financial year 2016, Digi’s net profit dropped 5.2 per cent to RM1.63 billion from RM1.72 billion.
Its revenue in the same period decreased 4.6 per cent to RM6.59 billion from RM6.91 billion recorded last year.