DiGi Com : Third-Quarter Net Profit Fell 9.9% as Pandemic Hurt Consumer Spending

By Chester Tay

DiGi.com Bhd.'s third-quarter net profit dropped 9.9% on weaker consumer spending due to the coronavirus pandemic and higher advertising and promotion spending post-lockdown.

Net profit fell to 320.8 million ringgit ($77.2 million), while revenue rose slightly from a year earlier to MYR1.58 billion, the cellular services provider said Friday.

For the first nine months of the year, net profit fell 14% to MYR940.8 million and revenue declined marginally to MYR4.59 billion, it said.

DiGi.Com said the industry continues to face headwinds due to a third wave of Covid-19 infections in Malaysia and its uncertain effects on the economy.

The company now expects its 2020 service revenue to drop by a low-to-medium single-digit percentage, compared with its previous guidance of a low single- digit percentage decline.

In terms of earnings before interest, tax, depreciation and amortization, DiGi.Com revised its guidance to a medium-to-high single-digit percentage decline from a medium single-digit percentage drop.

Write to Chester Tay at [e-mail]

(END) Dow Jones Newswires

10-16-20 0135ET