Malaysia: Digi mobile Internet revenue on the rise

• Oct 19, 2017

PETALING JAYA: Digi.Com Bhd ’s strategy to lower the cost of its mobile Internet packages to win more customers is paying off.

The telecommunication company said Internet revenue increased 8.3% in the third quarter ended Sept 31 to RM690mil from an expanded Internet subscriber base of 72%, which more than doubled its average data usage this year to 6Gb each.

Driving the increase was the stronger monetisation of services from the 8.5 million active Internet users in its base, of which 5.7 million are 4G LTE subscribers as well as growth in data traffic on its network.

“We feel confident from these past months that we are on the right track and that our strategy is yielding results,” its chief executive officer Albern Murty said in a statement.

“We will continue our investments in technology, product innovation and a refreshed retail and self-serve experience for our customers,” he added.

Earnings in the three months ended Sept 31 rose 7.2% to RM385mil compared with RM359mil in made in the second quarter.Service revenue improved 1.6% to RM1.476bil.

Digi said its stronger sequential performance and earnings were underpinned by solid postpaid and prepaid internet growth, better monetisation and quality network delivery of data, underscored by a continued focus on operational efficiency steadily delivering healthy Ebitda margins.

“These results were driven primarily by organic growth from our strategy for the past several quarters, centred around providing customers a quality experience on the best 4G Plus network, complemented by great value offerings,” Murty said.

Its operating cash flow increased 17.8% quarter-on-quarter to RM575mil, or 37% margin.

This is the strongest level in the last four quarters.

During the third quarter, Digi invested an additional RM152mil in capex to intensify LTE 900Mz sites deployment and nationwide network expansion for 4G LTE.

The company also simplified its prepaid Internet portfolio to include robust offers such as affordable weekly and monthly Internet passes, and worry-free one time Internet passes.

“Monthly active MyDigi users grew to 2.2 million while the volume of upsell transactions during the quarter surpassed 17.7 million,” the company said.

Source: http://www.thestar.com.my/business/business-news/2017/10/19/digi-mobile-internet-revenue-on-the-rise/#Gy0eRdll4YrccS7y.99