DiGi.Com’s 4Q Net Profit Fell 18% After Network Assets Write-Off
By Chester Tay
DiGi.com Bhd.’s fourth-quarter net profit slid 18% mainly due to the writing off of network assets that are no longer in use as the group moved to identify areas of improvement in its business.
Net profit for the October-to-December period fell to 280.2 million ringgit ($69.2 million), while revenue declined 7.0% to MYR1.56 billion, the Malaysian cellular service provider said Wednesday.
On annual basis, net profit for 2020 dropped 15% to MYR1.22 billion, while revenue declined 2.3% to MYR6.15 billion.
DiGi.Com said market conditions continue to be unpredictable due to challenges arising from the Covid-19 health crisis.
Nonetheless, the group expects a low single-digit percentage decline in 2021 service revenue, with earnings before interest, tax, depreciation and amortization recording a medium single-digit decline.
The group forecasts that 2021 capital expenditure will equal 14%-15% of total revenue.
Write to Chester Tay at firstname.lastname@example.org
(END) Dow Jones Newswires
January 27, 2021 00:34 ET (05:34 GMT)
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Dow Jones – DiGi.Com’s 4Q Net Profit Fell 18% After Network Assets Write-Off