Solid momentum from mobile internet revenue driving DiGi's growth in Q1 2013
Shah Alam, 23 April 2013: DiGi.Com Berhad (DiGi) recorded higher revenue of RM1,647 million in the first quarter of 2013, up 5% compared to the same period last year. This was mainly driven by mobile internet revenue which grew 55% year-on-year, from a larger base of 5.8 million mobile internet customers, including 3.0 million smartphone users.
Chief Executive Officer Henrik Clausen explained, "Steady revenue growth during the quarter was largely due to an increased focus on driving continuous quality improvements on our data network, expansion of our 3G footprint, and solid momentum made in our ongoing network modernisation programme. These efforts resulted in higher usage and a larger number of customers in the data segment during the quarter, while providing us with a strong foundation to continue delivering on our promise of mobile internet to more Malaysians, including making LTE available to our customers by the end of the second quarter."
"During the quarter we also introduced new smart digital service bundles leveraging our strategic partnerships with international Over-The-Top (OTT) players like Facebook, Twitter and WhatsApp to give customers richer mobile experience with relevant services. Additionally, we revamped our product line-up by bundling Postpaid Smart Plans with free voice and SMS and introducing the new DiGi Best Prepaid with free internet trial to give customers better value. These initiatives further encouraged internet usage and consequently strengthened mobile internet revenue for the quarter."
On future prospects, the company said that the completion of key initiatives under its business transformation programme will enable it to capture a bigger share of data revenues and grow its business in the long term. The company is modernising its voice and data network, information systems and information technology infrastructure, and go-to-market channels, with key projects due for completion by end 2013. At the end of the first quarter, DiGi has modernised 68% of its network of over 5,500 sites nationwide, and has expanded 3G coverage to 68% of the population from 56% a year ago. Quality and customer focus initiatives will also continue to be a mainstay of the company's strategy for the rest of the year.
For the quarter under review, DiGi's earnings before interest, tax, depreciation and amortization (EBITDA) was RM720 million, at a margin of 44%. Profit after tax grew by 3% year-on-year to RM329 million in the quarter mainly due to lower accelerated depreciation.
DiGi announced that it will pay a first interim tax exempt dividend of 3.8 sen per ordinary share equivalent to RM295 million or 90% payout ratio payable to shareholders on 7 June 2013.