DiGi delivers record-high YoY revenue growth
Growth buoyed by increasing traction from its 'Internet for All' proposition
Shah Alam, 24 October 2011: DiGi.Com Bhd continues to sustain the strong momentum of its data business, with mobile data accounting for close to 30% of the company's revenues for the first nine months of the current fiscal year. For the quarter under review, the revenue growth was additionally driven from seasonally strong voice and VAS revenues, the company said when releasing its 2011 third quarter results.
Chief Executive Officer Henrik Clausen said, "We've pushed harder to make data accessible and affordable to everyone on a mobile device. Today, we believe our 'Internet for All' proposition clearly responds to our customers' demand for accessible and quality mobile Internet. We see this reflected in continued strong growth in our data revenues, from a larger subscription base of 9.6 million customers. This was driven by product offerings aimed at encouraging new data users through attractive plans and handsets."
"We have also continued to strengthen the foundation of our data network to support future increase in mobile Internet adoption and traffic. Our network modernisation efforts remain a high priority for the Company, and we aim to further improve our capability in the areas of coverage, capacity, quality and efficiency to support mobile data growth, by putting in place a brand-new LTE-ready network by the end of 2012," Clausen explained.
The company is also streamlining its distribution set-up to improve its ability to anticipate and meet customer needs in a high data traffic environment. "Another key focus of our transformation agenda is to redefine our distribution network to significantly improve our presence and customers' experience across various touch-points nationwide," Clausen added.
DiGi's good traction on operational efficiency has again driven margin improvements during the quarter. "We remain committed to exploring industry collaboration aimed at further reducing network operating costs, and to drive improvements in our network quality and coverage. This would include leveraging on the scale and global initiatives of Telenor Group," Clausen explained.
For the quarter under review, DiGi recorded total revenue growth of 12.5% over the corresponding quarter last year, resulting in total revenues of RM1.52 billion.
Earnings before interest, tax, depreciation and amortisation ("EBITDA") and EBITDA margin for the third quarter also improved from RM593.8 million and 43.9% to RM708.3 million and 46.6% respectively. This was a result of solid revenue growth combined with continued focus on operational efficiency. DiGi will pay an interim single-tier tax exempt dividend of 37.0 sen per ordinary share for financial year ending 31 December 2011 on 8 December 2011.
Corporate Communications Department.