Digi Profit Jumps 80%

Malaysia's DiGi has reported an 80% jump in profit after tax to RM566 (US$154) million for the nine months ended 30 September 2006. The 80% increase in the profit after tax (PAT) from the corresponding period last year was on the back of RM2.7 billion (US$735 million) revenue which rose by 31%.

DiGi Chief Executive Officer Morten Lundal said: "We are very pleased with the financial performance but we are more focused on further strengthening our position in a highly competitive and challenging market place. We want to excite and satisfy our customers so that good financial results will follow."

Earnings before interest, tax, depreciation and amortisation ("EBITDA") rose 36% to record RM1.2 billion (US$327 million), strengthening margin to 45%, up 1.7 percentage point from last year. This was largely attributed to higher traffic within its own network and economies of scale gained from the increase in revenue.

The strong EBITDA performance and higher net finance income led to a 79% rise in profit before tax (PBT) to RM793 (US$216) million. Comparing Q3 '06 and Q3 '05, revenue grew by 24% to RM921 million, on the back of a higher customer base and better EBITDA performance.

DiGi also announced that Johan Dennelind will take on the role as Chief Marketing Officer to replace Chee Pok Jin who resigned earlier this month. Stefan Carlsson, previously CFO of Telenor Pakistan, will replace Dennelind as DiGi CFO. These management changes will take effect 1st November 2006."

Posted to the site on 23rd October 2006