DiGi records RM2.4 billion revenue for 1H09
Strong 1H operating cash flow of RM783 million
SHAH ALAM, 22 JULY 2009: DiGi.Com Berhad (DiGi) recorded RM2.4 billion revenue, a growth of 3% for the first half of 2009, driven by steady demand and a larger customer base of 7.2 million.
Commenting on the Company's performance, chief executive officer Johan Dennelind explained, "We are faced with challenges from the economic recession. We acknowledge revenue and margin pressures due to weakened customer spending, but we are responsive to customers' call for greater savings. Although the operating environment remains tough, we are holding up well versus competition."
Year-to-date average revenue per user (ARPU) reduced from RM59 to RM55 as a result of lower usage by the low income segments in view of the economic slowdown.
Earnings before interest, tax, depreciation and amortisation (EBITDA) declined by 4% to RM1.1 billion while EBITDA margin decreased to 43.9% as compared to 47.2% resulting from an increase in traffic and network operating costs.
The Group's profit before tax (PBT) stood at RM696.4 million compared to RM799.6 million registered in the previous financial period. This was mainly attributed to increased finance costs in relation to additional borrowings, and higher depreciation and amortisation.
Consequently, profit after tax (PAT) lowered to RM509.9 million from RM588.5 million in the same period last year with earnings per share (EPS) of 65.6 sen compared to 77.6 sen in the preceding financial period.
On the way forward Dennelind added, "We are actively managing our costs to meet shareholders expectations on cashflow and yields. In tandem with that, we have solidified our value proposition to customers focusing on relevant, easier and better deals in everything we do. I am convinced we have taken steps in the right direction to strengthen our long term financial standing. We are already on track to meet our financial guidance of a higher operating cash flow than last year."
DiGi will pay an interim single-tier exempt dividend of 49.0 sen per ordinary share for financial year ending 31 December 2009 on 18 September 2009. The entitlement date is on 3 September 2009.
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.