DiGi records RM1.2 billion revenue in Q109
Maintains steady results in tough times
SHAH ALAM, 30 April 2009: DiGi.Com Berhad (DiGi) posted a 4% growth in revenue amounting to RM1.2 billion for the first quarter ended 31 March 2009 compared to the same period last year despite tough operating environment. The increased revenue was due to steady demand for mobile services and an increased subscriber base.
Chief Executive Officer Johan Dennelind said that DiGi is pleased to have recorded positive momentum although at a lower level in light of challenging macro economy and weaker consumer confidence. He explained, "Overall, we saw reduced spend by the low income segments, which has, and will continue to impact our business as we have slightly higher exposure here. Nevertheless, we continue to attract customers who are looking for savings in tougher economic times by staying true to our best value promise."
The average revenue per minute (ARPM) was relatively stable for the quarter but the average revenue per user (ARPU) contracted to RM56. Subscriber base stood at 7.2 million at the end of the quarter compared to 6.6 million in the same period last year.
The Group recorded earnings before interest tax, depreciation and amortisation (EBITDA) and EBITDA margin of RM543.5 million and 44.6% respectively. Compared to the same period last year, the slightly lower EBITDA and EBITDA margin for the quarter resulted from higher traffic and network operating cost.
For the quarter under review, profit before tax (PBT) was down 6% to RM372.5 million due to reduced EBITDA, commencement of 3G spectrum amortisation and increased finance costs from additional borrowings. As a result, profit after tax (PAT) declined by 5% to RM275.4 million. Earnings per share also lowered to 35.4 sen for the quarter against 38.7 sen recorded in the same period last year.
On the prospects of the Group for the remaining year, DiGi expects the macroeconomic environment in Malaysia to continue to be challenging although it believes that telecommunications will be relatively resilient compared to other industries.
Notwithstanding the slower quarter and economic uncertainty, the Board remains cautiously optimistic that the Group will be able to capture additional revenue growth opportunities going forward.
Dennelind added, "Tougher times have driven us to rethink, revitalise and rebuild our business focus and find new ways of doing things better to stay even more relevant to our customers and stakeholders. We are pushing for greater innovation as a catalyst for growth during the slowdown in order to better compete when recovery surfaces."
DiGi is steadfast in its strategy to seed long-term growth through continuous innovation in the mobile business and beyond. Notably, DiGi launched Malaysia's first 14.4 3G/HSPA wireless broadband network to realise its ambition to bring Internet to the people in the first quarter this year. With household penetration for broadband at only 21.2% as of end 2008, DiGi is confident that it will be a strong contributor towards increasing broadband penetration in the country through its promise of value and quality broadband.
Charting more milestones in the quarter, DiGi made its foray online with the launch of mySimplifieds classifieds portal and introduced DiGi Priority Service, a first-of-a-kind customer loyalty programme.
"I believe we have taken steps in the right direction to deliver on our promise for excellent customer experience and in tandem with that, bring in new revenue streams in the medium-to-long-term. This coupled with our continued cost optimisation focus should strengthen our financial standing and overall competitiveness," said Dennelind.
Established in 1995, DiGi is listed on Bursa Malaysia and is part of the global telecommunications provider, Telenor Group. As the first telco to operate a fully digital mobile network in Malaysia, DiGi focuses on delivering excellent customer experience that are simple, innovative and of best value through DiGi Prepaid, DiGi Postpaid and DiGi Business. Customers can now also enjoy a fresh broadband experience with the launch of DiGi's 3G broadband services. Through its corporate initiative, Deep Green, DiGi is committed to a sustainable business that is fiscally and ecologically responsible to all stakeholders.
Corporate Communications Department.