Digi expects to allocate 11-12 pct in capex this year

KUALA LUMPUR, � Digi.com Bhd is expected to allocate about 11 to 12 per cent of service revenue for capital expenditure (capex) this year, with the bulk of it to be utilised for network enhancement and digitalisation of services.

Chief financial officer Inger Gloersen Folkeson said, based on the service to revenue ratio the company is expected to spend the same level of capex as last year.

The bulk of the capex would be used for network enhancement and digitalisation of its services, she told the media after the company’s annual general meeting here today.

On the outlook for FY2019, the company according to her would sustain its service revenue at FY18 level which stood at RM5.92 billion and low single-digit growth of earnings before interest and taxes.

For the first quarter, Digi she said had invested RM186 million in capex, for its information and technology and network capacity upgrade, fibre network expansion and deployment of network function virtualisation.

Meanwhile, chief technology officer, Kesavan Sivabalan said Digi’s 4G network penetration has reached 89 per cent.

The company will continue to expand its penetration level and maintain the right quality.

The group is also trying out a few things with its current infrastructure. We have our own fibre network of about 8,400 km, which is in the pilot stage and will be leveraging on that with a few partners to see how it goes, he said.

On its 5G network, Kesavan said the company has not allocated any investment figures at the moment.

He said it would take a few more years to fully realise the technology and Digi would invest accordingly when the time is right.

The 5G network according to him, would not be a general rollout but based on specific use cases and areas.

Digi’s chief marketing officer Loh Keh Jiat said the company would focus on two areas for growth – personalisation and data segment – by offering more services to cater to the needs of the subscribers.

Looking at the large customer base that we have and going into a micro-segment within it, we could still see pockets of a different segment and different needs, we believed there is still a lot more opportunities there, he added.

Source: BERNAMA (News Agency)