Malaysia's Digi Reports 14% Jump in First Half Revenues

Malaysian GSM network operator, DiGi.Com Berhad has recorded revenue of RM2.36 billion (US$730 million) in the first half of 2008, a growth of 14% compared to the corresponding period last year.

The growth of 14% was attributed to both higher usage and higher average revenue per user (ARPU) of RM59 (US$18.26), up from RM58 in the first half of 2007. As of 30 June 2008, the Group's subscriber base stood at 6.6 million.

DiGi Chief Executive Officer Johan Dennelind said: "In the second quarter, we further affirmed our value proposition with innovative campaigns that encouraged higher usage and grew our revenue.

"We kept our promise of best value in mobile offerings with simple and easy to use services. Customers should expect even more compelling products and services from us in the coming months in light of mobile number portability and growing competition."

The Group's earnings before interest, tax, depreciation and amortisation ("EBITDA") improved by 11% to RM1.11 billion compared to RM999 million in 2007. The growth was mainly driven by higher revenue while pressure from higher traffic charges shaved the EBITDA margin by one percentage point to 47.2% compared to last year.

For the six month period, the Group posted profit before tax ("PBT") of RM800 million, an increase of 17% against RM684 million recorded in 2007. Profit after tax ("PAT") grew by 19% to RM589 million from last year as a result of strong operational performance and one percentage point saving in statutory tax rate.

On the future of DiGi, Dennelind who took over the helm four months ago, explained: "I am pleased that we remained focused in our strategies while at the same time prudent in looking at ways to re-energise ourselves to stay ahead. We have great people whom I believe are our biggest asset in taking the company to the next level."

Moving forward, the Group is confident of tapping on growth opportunities arising from broadband.

Dennelind added: "We are committed to make mobile communication even more pervasive and personal through advanced data and broadband services, and will do our best to bring internet to the people through easy to use and innovative services by early next year."

Posted to the site on 22nd July 2008