DiGi revenue up 3.5% to RM1.335 billion in Q2
Declares second interim dividend of 35 sen per share
SHAH ALAM, 20 JULY 2010: DiGi.Com Berhad (DiGi) delivered another solid quarter posting RM1.335 billion in revenue, a 3.5% increase from the previous quarter on the back of increased usage and a larger customer base of 8.1 million.
For the quarter under review, average revenue per user (ARPU) held steady at RM53 despite increased price competition in the market.
Earnings before interest, tax, depreciation and amortisation (EBITDA) grew from RM576 million to RM578 million from the previous quarter. Despite the revenue growth, the EBITDA margin reduced to 43.3% from 44.6% due to increased sales of handset bundles, as highlighted in the preceding quarter. This was partly off-set by lower allowances for credit losses from improved collections, and increased cost savings from operational efficiency initiatives.
Profit before tax (PBT) and profit after tax (PAT) were RM378.0 million and RM278.4 million respectively (Q1: RM378.5 million and RM278.3 million respectively) at the close of the current financial period.
On the prospects for the remaining year, the Group expects to continue to grow revenue and improve its operational efficiency.
Clausen explained, "We are focused on addressing the growing demand for quality internet access by ensuring affordability of smart devices, availability of coverage and reliability of service. To this end, we will continue to invest substantially on product innovation and network expansion. We have now widened our 3G/HSPA footprint to Johor Bahru in addition to Klang Valley, Penang, Kota Kinabalu, Ipoh and Kuching covering around 35% of the population in Malaysia. It is our ambition to reach out to 50% population coverage by year end."
DiGi is declaring a second quarterly interim dividend of 35.0 sen per ordinary share, equivalent to a payout ratio of 98% of net profit, for the financial year ending 31 December 2010, to be paid on 24 September 2010.
DiGi appoints new Chief Financial Officer (CFO)
Today, DiGi also announced the appointment of its new CFO Terje Borge, who will succeed Stefan Carlsson on 2 August 2010.
Clausen added, "Terje brings with him extensive experience and skills in finance as well as a deep understanding of the Asian mobile telecommunications industry. I am confident DiGi will benefit from his knowledge and leadership, and I am pleased to welcome him to DiGi.
"During Stefan's time as CFO, DiGi has been well acknowledged for our focus on corporate governance and shareholder value creation. Internally, he has improved DiGi's fiscal management and financial processes, and has been a key driver of the company's operational efficiency and revenue enhancement initiatives. I would like to thank Stefan for his excellent and dedicated contribution to DiGi, and wish him all the best in his future undertakings," concluded Clausen.
Commenting on his departure, Carlsson said, "After four very rewarding years, leaving DiGi will naturally be difficult for me, but I feel the time is now right for me to move on to new challenges. I would like to wish Terje the very best in working with the finance team and the management of DiGi in taking the company to the next level."
Borge has served as CFO of DTAC in Thailand for the past three years, following several executive roles in Telenor Asia and Telenor International Mobile in his 10 years of service with the group. Prior to joining Telenor, he held senior positions in Corporate Development and Finance & Strategy at Dyno Industrier ASA. He hails from Norway, and holds a Master of Science in Business Administration from the Norwegian School of Economics and Business Administration.
Established in 1995, DiGi is listed on Bursa Malaysia Securities Berhad and is part of the global telecommunications provider, Telenor Group. DiGi focuses on making it easy, keeping it relevant and providing the best deals to ensure excellent customer experience in mobile and internet services. Through its corporate initiative, Deep Green, DiGi is committed to a sustainable business that is financially and ecologically responsible to all stakeholders.
Corporate Communications Department.