KUALA LUMPUR: Digi.com Bhd has posted a net profit of RM39.2 million in the second quarter ended June 2019, 2.12 per cent higher than RM38.4 million in the same period a year ago mainly due to deferred tax over provision.

However, its net profit for the first of half of the year was lower at RM73.3 million compared with RM77 million a year ago on intense competition.

Revenue for the quarter stood at RM1.55 billion, lower than RM1.6 billion in the corresponding period last year.

Digi’s service revenue grew 0.7 per cent quarter-on-quarter with a narrowed decline of 2.2 per cent year-on-year to RM1.4 billion, primarily driven by 12.6 per cent postpaid revenue and 9.2 per cent internet revenue growth.

Prepaid revenue trimmed 13.2 per cent year-on-year to RM751 million.

Moving forward, Digi chief executive officer Albern Murty said the firm aims to deepen customer insights capabilities and digitalisation efforts to drive differentiated customer experiences, connecting more Malaysians with services that matter most to them.

“We have started executing on this strategy and remain resilient in the midst of challenging market conditions,” he said in a statement.

The company had invested RM261 million in capital expenditure or 18.6 per cent of service revenue in the second quarter to accelerate technology capabilities that will activate growth opportunities in the next quarter.

These include information technology (IT) capability improvements, network capacity and coverage upgrades, fibre network expansion, and network function virtualisation deployment.

Digi’s network now connects 11.4 million customers, serving populated areas across Malaysia with 4G LTE that are 90 per cent, LTE-A with 70 per cent coverage and 9,100km of fibre network.