DiGi continues to deliver good returns to shareholders backed by strong cash flow

Press Release
February 2, 2010

DiGi continues to deliver good returns to shareholders backed by strong cash flow
Declares 54.0 sen second interim dividend

SHAH ALAM, 3 FEBRUARY 2010: DiGi.Com Berhad (DiGi) keeps up the momentum of delivering superior returns to shareholders. The 54.0 sen single-tier exempt dividend per ordinary share which will be paid on 26 March 2010 brings the total payout for the year to RM1.78 per share or 138% of net profit in 2009.

Johan Dennelind, chief executive officer of DiGi explained, "We have improved our operational cash flow and maintained a strong balance sheet with high flexibility this year. This coupled with continuous growth in the business enabled us to keep to our promise to return excess cash and deliver yet another good year to our shareholders."

Announcing its fourth quarter financial results today, Dennelind added, "2009 was a year of transition for DiGi focusing on internet to the people, by rolling out our Turbo 3G™ network. We are proud to have held up relatively well in our core mobile business while at the same time establishing ourselves as a leading mobile internet player.

"Concerted efforts to improve our competitiveness and relevance to customers have helped strengthened our customer base in the fourth quarter particularly driven by the increase in take up of our mobile internet services. The focus now is to turn this into revenue momentum."

Year-on-year, the Group's revenue grew by 2% to RM4.9 billion on the back of steady demand for mobile services from its 7.7 million subscriber base, up 8% year-on-year. Average revenue per user (ARPU) decreased to RM55 from RM59 primarily due to reduced spending by the low income segments affected by the economic slowdown, and increased competition.

Consequently, earnings before interest, tax, depreciation and amortisation (EBITDA) contracted slightly to RM2.1 billion (2008: RM2.2 billion), while margin declined to 43.3% compared to 45.1% in the previous financial year.

The Group's profit before tax (PBT) was RM1.4 billion (2008: RM1.5 billion) while profit after tax (PAT) stood at RM1.0 billion (2008: RM1.1 billion) for the current financial year.

On the prospects for 2010, the Group is optimistic that overall usage trend will stabilise and business will continue to grow arising from big pent up demand for quality broadband and internet access.

Dennelind explained, "The future growth of the industry will be driven by higher uptake of mobile internet services. We are pleased that the launch of DiGi internet last year has been well received with more than 500,000 cumulative (3G) mobile internet customers to date.

"Moving forward, we will continue to invest in the expansion of the most advanced Turbo 3G™ (14.4Mbps HSPA) network to rapidly broaden our internet footprint nationwide. While we grow our coverage in locations we are already in, we also plan to be in new market centers this year to meet the increasing customer demand for data services and to capitalise on this mega trend for future growth."


About DiGi
Established in 1995, DiGi is listed on Bursa Malaysia Securities Berhad and is part of the global telecommunications provider, Telenor Group. DiGi focuses on making it easy, keeping it relevant and providing the best deals to ensure excellent customer experience in mobile and internet services. Through its corporate initiative, Deep Green, DiGi is committed to a sustainable business that is financially and ecologically responsible to all stakeholders.

Issued by:
Corporate Communications Department.