Business

Higher revenue not enough as Digi’s Q2 net profit slips on-year 

Earnings up 0.2 sen per share, but down 0.1 sen from 12 months ago

Updated 5 years ago · Published on 16 Jul 2021 4:30PM

Higher revenue not enough as Digi’s Q2 net profit slips on-year 
Digi is reaffirming financial year 2021 guidance medium single digit decline for profitability. – Bernama pic, July 16, 2021

KUALA LUMPUR – Digi.Com Bhd’s net profit for the second quarter ending June 30, 2021 slipped to RM279.91 million from RM288.04 million recorded in the same period a year ago, but revenue was up 11.4% cent to RM1.62 billion, underpinned by better performance of the mobile segment and device sales.

Its earnings for the quarter amounted to 3.6 sen per share, an increase of 0.2 sen quarter-on-quarter despite a marginal drop of 0.1 sen year-on-year.

“The board of directors declared a second interim dividend of 3.6 sen per share, equivalent to RM280 million of dividend payout or a dividend payout ratio of 100% to valued shareholders,” it said in a statement shared with Bursa Malaysia.

On its outlook, the telco said it has signed a conditional share purchase agreement with Axiata Group Bhd as part of the prior-announced proposed merger of telecommunications operations Celcom Axiata Berhad 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, we remain 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,” it said.

Digi is reaffirming financial year 2021 guidance of low single digit decline for service revenue, medium single digit decline for earnings before interest, taxes, depreciation, and amortisation and capex-to-total revenue ratio of 14.0% to 15.0%. – Bernama, July 16, 2021

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