DiGi posts 12% growth in revenue
Steady increase in customer base and net profit for the first nine months
SHAH ALAM, 24 October 2008: DiGi.Com Berhad ("DiGi") kept up its growth momentum to post RM3.58 billion in revenue for the nine months ended 30 September 2008, up 12% from the corresponding period last year.
The increase came on the back of steady demand for mobile services and a larger subscriber base amounting to 6.8 million. Average revenue per user ("ARPU") sustained at RM59.
DiGi's chief executive officer Johan Dennelind said, "It was a busy quarter where we strengthened our value propositions with our new postpaid and prepaid plans. These compelling offerings again delivered on our fundamental promise of simplicity and innovation with packages that give customers more of what they want.
"In the same vein, we also expanded our services beyond telecommunications by being the first in the industry to offer free Personal Accident insurance to all our customers; raising the bar on user experience by adding value where it means most to our customers.
"We are pleased that these activities were well-received as seen in the 10% revenue growth to RM1.22 billion for the current quarter compared to the same quarter last year thanks to an enlarged subscriber base and a stable ARPU."
Looking at the year-to-date results, DiGi's earnings before interest, tax, depreciation and amortisation ("EBITDA") improved by 7% to RM1.63 billion compared to RM1.53 billion in 2007 driven by higher revenue. However, pressure from higher traffic and network operating costs lowered EBITDA margin to 45.6% against 47.9% for the same period in 2007.
Profit before tax ("PBT") showed a 10% improvement to RM1.17 billion primarily attributable to higher EBITDA. Meanwhile, profit after tax ("PAT") grew by 12% year-on-year to RM858 million; partially boosted by the one percentage point reduction in statutory tax rate for the current fiscal year. Consequently, earnings per share increased to 112.3 sen against 102.6 sen previously.
On the future, Dennelind remains cautiously optimistic of the Company's growth momentum. "Although we expect increased price competition to exert pressure on core tariffs and margins, we believe that over time, higher voice and advanced data usage will lead to continued revenue growth. We also see opportunities to further generate revenues in the medium to long-term with the newly introduced mobile number portability and the impending launch of our 3G mobile broadband offerings in early 2009. We are in for exciting yet challenging times ahead of us and we can't wait to realise our full potential to our customers and stakeholders.
"In fact, we are immediately rewarding our shareholders with a special dividend payout. The decision to proceed with the special dividend was taken in view of DiGi's strong cashflow. This is also a logical step forward in fulfilling our commitment to have an optimal capital structure," he added.
DiGi will pay a special single-tier exempt dividend of 78 sen per ordinary share for financial year ending 31 December 2008. The payment date for the dividend will be determined later.
DiGi is Malaysia's fastest growing mobile operator driving innovation, simplicity and best value through DiGi Prepaid, DiGi Postpaid and DiGi Business.
Corporate Communications Department.