DiGi ends year on high note

Press Release
February 14, 2006

DiGi ends year on high note

Best ever quarter results recorded:

  • Revenue up 37% to RM828 million
  • EBITDA up 35% to RM361 million
  • Net profit at RM157 million, up 65%
  • Net subscribers surge 608,000 to 4.8 million

  • Kuala Lumpur, February 15, 2006:DiGi.Com Berhad ("DiGi") today announced its best ever quarter results for the three-month period ended 31 December 2005, with high revenue growth and a surge in its customer base.

    Morten Lundal, DiGi's Chief Executive Officer, commented: "I am very pleased by this quarter's impressive results. We not only sustained, but grew our business to strengthen our relative market position. Despite fierce competition, we held our ground, gained momentum and delivered yet another set of strong results - our strongest quarter ever.

    "The strong growth in revenue, customer base and profitability is a direct result of the various promotions during the year and the momentum created by the 10th Anniversary campaign for both prepaid and postpaid. We made good in our promise to our customers and consistently delivered on DiGi being the smartest choice in terms of innovation, simplicity and value."

    Q405 versus Q404
    For the quarter under review, revenue increased by 37% to RM827.7 million compared with RM606.3 million achieved in the last corresponding quarter. Higher revenue was attributed to the 45% growth in the mobile segment as a result of the 48% increase in customer base, largely driven by simple and relevant product offerings and promotions.

    Earnings before interest, tax, depreciation and amortization ("EBITDA") grew by 35% to RM360.8 million while EBITDA margin recorded at 43.6%, a 0.6% decrease from Q4 2004 as a result of more aggressive marketing and promotional campaigns.

    Profit before tax ("PBT") rose by 62% to RM218.6 million while profit after tax ("PAT") registered at RM156.6 million or 65% higher than RM95.1 million recorded last year.

    Q405 versus Q305
    Revenue jumped by 11% to RM827.7 million with 608,000 net customers added, bringing the total customer base to 4.8 million for this quarter. As a result of higher revenue, PBT for the current quarter under review grew by 10% to RM218.6 million from RM198.8 million recorded in the preceding quarter, while PAT rose 9.6% to RM156.6 million.

    The company attributed the strong revenue performance to the surge in higher traffic usage as a result of the new and attractive products and services offered during the festive and holiday season. Prepaid segment continues to drive revenue with average revenue per user ("APRU") improved by RM1 to RM55 while blended ARPU maintained at RM58.

    Although EBITDA increased by 10% to RM360.8 million, EBITDA margin eased at 43.6% due to higher general and administrative expenses.

    YTD 05 versus YTD 04
    As a result of the rise in customer uptake from the mobile segment, the company achieved higher revenue of RM2.88 billion for the financial year ended 31 December 2005, an increase of 29% from RM2.23 billion recorded in the previous financial year.

    Higher mobile revenue contributed to the 35% growth in voice usage while mobile data revenue grew by 57%, accounting for 17% of mobile revenue against 15% a year ago.

    EBITDA increased by 29% to RM1.26 billion from RM979.0 million recorded in 2004, while EBITDA margin held up at 43.7% thanks to prudent cost management.

    PBT rose to RM661.6 million, up 48% partly due to better EBITDA performance and lower net finance costs. Accordingly, PAT registered at RM471.0 million, contributing to higher earnings of 62.8 sen against 42.3 sen recorded last year, a 48% increase.

    Lundal cited his confidence in the Malaysian telecommunications industry stressing that there is still room for further revenue growth as subscribers respond to new and compelling products and services with increased usage.

    "Data services will vie with voice as a revenue driver, which in turn challenges telco players to innovate and seek quality coverage, and offer exciting services at low prices - all of which benefits the customer. DiGi sees strong potential for local content development and is working closely with local partners on innovative mobile data solutions.

    "We aim to outperform the industry, and will continue to invest in developing our human resource and innovative business models. As such we are on track to invest between RM800 and RM900 million to deliver on our commitment to nationwide coverage and broadband rollout.

    "It has been a great 2005 and we look forward to another good year this 2006. There will be many challenges and much excitement, and we are well positioned to take advantages of the many opportunities to deliver shareholders' value for the longer term," he concluded.

    About DiGi
    DiGi is a leading mobile communications company providing a comprehensive range of affordable, convenient and easy to use wireless services to simplify and enrich the lives of its customers. We create value for our customers by selecting the most appropriate cutting edge technology so that they benefit from products and services that give them choice, convenience and control.

    We have an established presence as a leader in voice and data prepaid services with a number of firsts that have set industry benchmarks for creativity and innovation. These services are offered under the DiGi Prepaid brand name. Our postpaid service under the DiGi Postpaid and DiGi Business deliver high quality voice as well as value-added mobile content and data services to both individual and corporate customers.

    Issued by:
    Corporate Communications Department
    DiGi Telecommunications Sdn Bhd
    Lot 10, Jalan Delima 1/1
    Subang Hi-Tech Industrial Park
    40000 Shah Alam, Selangor Darul Ehsan