DiGi's revenue grow 21% to RM626 million in first quarter 2005
Growth arising from continued product innovation and segmentation
Kuala Lumpur, April 26, 2005 - DiGi.Com Berhad ("DiGi") today announced higher revenue of RM626 million for the first quarter 2005, a 3% quarter-on-quarter improvement (6% quarter-on-quarter growth for its mobile revenues) and an impressive 21% year-on-year growth against the preceding year corresponding quarter (28% for its mobile revenues). Growth was principally driven by DiGi's continued product innovation and segmentation.
DiGi's better operational performance this quarter was also evident in the 3% increase in earnings before interest, tax, depreciation and amortization ("EBITDA") to RM275 million against the previous quarter, translating into a 17% improvement from the same quarter a year ago. EBITDA margin was stable at 44% for the quarter under review.
Commenting on the Group's performance, DiGi's Chief Executive Officer, Mr. Morten Lundal said," We are pleased with DiGi's positive performance in the first quarter of 2005. DiGi continued to show stable financial improvements on the back of growth driven by higher subscriber numbers and sound usage".
DiGi's mobile customer based as of end March 2005 grew by 221,000 to 3.46 million. According to Lundal, "The growth is driven by DiGi continuing to be a forerunner in bringing to the market simple, attractive and ever-innovative products and services that are of clear relevance to customers. We are confident that our high pace of innovation and product segmentation will be the key drivers enabling DiGi to grow its customer base as well as its profitability in the future".
He further added that, "DiGi's new Postpaid Zero Access launched in early March is a good example of DiGi's segmentation approach that has created a very positive market response. DiGi achieved a 17% growth in terms of postpaid subscribers to 202,000 in the first three months of 2005 against 172,000 in the last quarter 2004".
Due to the adoption of an accelerated depreciation policy, DiGi's profit before tax ("PBT) and profit after tax ("PAT) for the period under review declined to RM84.8 million and RM58.0 million respectively. The PAT was negatively affected by RM33 million due to the accelerated depreciations. The earnings per share for the period under review came in at 7.7 sen, compared to 12.7 sen in the last quarter 2004. Lundal further clarifies that DiGi's accelerated depreciation policy is a deliberate move to be in line with the current standards adopted by DiGi's ultimate holding company, Telenor ASA, and to better reflect the useful life of certain assets.
Lundal concluded; "DiGi will continue to actively pursue an optimal investment program with an aim to deliver high service quality and coverage expansion to its customers".
DiGi is a leading mobile communications company providing a comprehensive range of affordable, convenient and easy to use wireless services to simplify and enrich the lives of its customers. We create value for our customers by selecting the most appropriate cutting edge technology so that they benefit from products and services that give them choice, convenience and control.
We have an established presence as a leader in voice and data prepaid services with a number of firsts that have set industry benchmarks for creativity and innovation. These services are offered under the Beyond Prepaid brand name. Our postpaid service under the Horizon Postpaid and Discover Business Solutions brand names deliver high quality voice as well as value-added mobile content and data services to both individual and corporate customers.