DiGi held strong for 2008
Grew PAT to RM1.1billion
SHAH ALAM, 6 February 2009 -DiGi.Com Berhad (DiGi) posted after-tax-profit (PAT) of RM1.1 billion on the back of a 10% growth in revenue to RM4.8 billion in 2008.
The rise in revenue was driven by steady demand for mobile services and an increase in subscriber base to 7.1 million at the end of 2008. Average revenue per user (ARPU) maintained at RM59.
Commenting on DiGi's performance in 2008, chief executive officer Johan Dennelind said, "We are pleased to have met our financial guidance despite intense competition and a more challenging macro-economic environment towards the second-half of 2008. Encouragingly, we are gaining positive momentum for our postpaid business as seen in the significant increase in subscriber base by 56%, surpassing the 1 million mark."
Year-on-year, DiGi's earnings before interest, tax, depreciation and amortisation (EBITDA) rose to RM2.2 billion. As expected, EBITDA margin decreased to 45.1% due to competitive price pressure, higher traffic and network operating costs as well as increased sales and marketing expenses.
Profit before tax (PBT) was RM1.5 billion, up 7% from RM1.4 billion in the previous year resulting from increased revenue and EBITDA. PAT also increased by 7% to RM1.1 billion. Consequently, earnings per share grew from 141.7 sen in 2007 to 148.5 sen in the current year.
Comparing the quarter's results with the same period last year, the Group's revenue grew by 5% to RM1.2 billion. EBITDA for the quarter was RM536.3 million with a margin of 43.5%, affected by higher traffic costs and slightly lower ARPU of RM58. DiGi’s PBT and PAT for the quarter stood at RM381.8 million and RM282.2 million respectively.
Looking forward, DiGi sees a challenging year ahead but remain cautiously optimistic of growth opportunities. Dennelind adds, "We are excited to be able to bring internet to the people with the launch of our 3G and mobile broadband services soon. It will open up new revenue streams for the Company and more importantly, an opportunity for DiGi to bring a fresh broadband experience to Malaysians."
The Board of Directors has recommended a final single-tier exempt dividend of 53.0 sen per ordinary share for the financial year ended 31 December 2008. The dividend will be paid on a date to be determined and is subject to the approval of shareholders at the forthcoming Annual General Meeting.
DiGi is one of Malaysia's leading mobile operator driving innovations, simplicity and best value to enrich lifestyles through DiGi Prepaid, DiGi Postpaid and DiGi Business. Through its corporate-wide initiative, Deep Green, DiGi is committed to a sustainable business that is fiscally and ecologically responsible for all its stakeholders.
Corporate Communications Department.