Friday, August 19

Solid mobile Internet growth powers DiGi’s strong revenue


KUCHING: DiGi.Com Bhd (DiGi) recorded higher revenue of RM1.653 billion in the second quarter of 2013 (2Q13) fuelled by continuous growth in service revenue, up 3.4 per cent to RM1.526 billion compared to the previous quarter.

This was mainly driven by mobile internet revenue which grew 10.6 per cent quarter-on-quarter, from a larger base of 6.8 million mobile internet subscribers.

Earnings before interest, tax, depreciation and amortisation (EBITDA) and EBITDA margin were RM747 million and 45 per cent respectively, 3.8 per cent stronger than the first quarter of the year.

Profit after tax (PAT) was RM380 million, 15.5 per cent higher than the previous quarter, and the strongest recorded PAT over the past four quarters.

Commenting on the second quarter performance, chief executive officer Henrik Clausen explained, “Our growth is largely attributed to significant improvements in our network quality and coverage, our continued focus to deliver relevant and affordable service offerings, and an expanded customer base.

“By the end of the quarter we had successfully swapped 85 per cent of our sites nationwide, expanded our 3G network footprint to 72 per cent of populated areas, and made further gains on our network quality and customer focus initiatives, which will continue to be a priority for the rest of the year.”

Clausen added, “Growth was also driven by the larger take-up of mid- to low-priced smart devices, bundled internet offerings for prepaid subscribers, and stronger postpaid subscriber acquisition.”

In early July, DiGi added LTE services at high traffic locations in the Klang Valley as part of its overall suite of internet service offerings, and an extension of its ambition of delivering Internet For All.

“We will be investing approximately RM650 million in capital expenditure in the next three years to gradually expand our LTE coverage to key urban centers nationwide, and target 1,500 sites at end 2014.

“This will be done in tandem with the expansion of our 3G population coverage to more than 75 per cent of populated areas by end 2013, the upgrade of our network to HSPA+, and the further roll-out of our fibre build to enable the efficient delivery of high-speed mobile internet services to our customers,” said Clausen.

DiGi announced that it will pay a second interim tax exempt dividend of 4.8 sen per ordinary share equivalent to RM373 million or 98 per cent payout ratio payable to shareholders on September 6, 2013.