DiGi posts RM290 million after-tax profit
Sustains growth momentum
SHAH ALAM, 29 April 2008: DiGi.Com Berhad ("DiGi") recorded a profit after tax (PAT) of RM290 million in the first quarter ended 31 March 2008, up18% from the corresponding quarter last year.
The group's revenue soared 15% to RM1.17 billion, driven by higher traffic usage and stable average revenue per user of RM58. Attractive and innovative product offerings continued to win DiGi new customers, increasing its subscriber base by 13% to 6.6 million users.
DiGi Chief Executive Officer Johan Dennelind said: "Last quarter we had seen a somewhat slower growth in some segments but overall we see a good momentum. Competition has become a powerful motivation for DiGi, and the more aggressive the market the greater our passion to satisfy the customer."
Operationally, earnings before interest, tax, depreciation and amortisation ("EBITDA") improved by 12% to RM556 million and this was largely driven by higher revenue. However, higher spending to further enhance customer services and experience, including the transaction costs of the proposed transfer of 3G spectrum, shaved EBITDA margin by 1.3 percentage points to 47.7%.
DiGi plans to use 3G to further strengthen network efficiency, enhance voice quality and offer a complete range of broadband services. The proposed transfer should be completed next month for DiGi to initiate 3G roll-out by the second half of 2008.
Dennelind said: "Just thinking of the numerous opportunities to benefit consumers and businesses fuels our drive for broadband services that can make a real difference in Malaysia's mission for affordable and easily access to the Internet."
During the quarter, profit before tax (PBT) jumped 17% to RM396 million and the group benefited from the 1% reduction in corporate tax rate to post a PAT of RM290 million. Earnings per share increased to 38.7 sen against 32.8 sen previously.
Comparing quarter to quarter, PBT rose 2% mainly due to the effect from a change in the amortization period for an intangible asset in the previous year.
For the next three quarters, the Group expects overall growth for the industry, with mobile data usage growing revenue further beyond the voice market in a very competitive environment.
DiGi will pay on 30 May 2008 a final dividend of 4.75 sen per ordinary share less 26% income tax and 54.5 sen single-tier exempt dividend per ordinary share for the financial year ended 31 December 2007. The entitlement date is 20 May 2008. (Under this single tier system, tax on company's profits is a final tax and dividends distributed to shareholders will be exempted from tax.)
DiGi is Malaysia's fastest growing mobile operator driving innovation, simplicity and best value through DiGi Prepaid, DiGi Postpaid and DiGi Business.