Malaysian Operator Reports 12% Increase in 9 Months Revenues

Published on: 26th October 2008

Malaysian mobile operator, DiGi has posted revenues for the first nine months of this year of RM3.58 billion (US$1 billion), up 12% from the corresponding period last year. Average revenue per user (ARPU) was sustained at RM59, and the subscriber base reached 6.8 million.

DiGi's chief executive officer Johan Dennelind said: "It was a busy quarter where we strengthened our value propositions with our new postpaid and prepaid plans. These compelling offerings again delivered on our fundamental promise of simplicity and innovation with packages that give customers more of what they want.

"We are pleased that these activities were well-received as seen in the 10% revenue growth to RM1.22 billion for the current quarter compared to the same quarter last year thanks to an enlarged subscriber base and a stable ARPU."

Looking at the year-to-date results, DiGi's earnings before interest, tax, depreciation and amortization ("EBITDA") improved by 7% to RM1.63 billion (US$457.6 million) compared to RM1.53 billion in 2007 driven by higher revenue. However, pressure from higher traffic and network operating costs lowered EBITDA margin to 45.6% against 47.9% for the same period in 2007.

Profit before tax showed a 10% improvement to RM1.17 billion (US$328.5 million) primarily attributable to higher EBITDA. Meanwhile, profit after tax grew by 12% year-on-year to RM858 million (US$241 million); partially boosted by the one percentage point reduction in statutory tax rate for the current fiscal year.

On the future, Dennelind remains cautiously optimistic of the Company's growth momentum. "Although we expect increased price competition to exert pressure on core tariffs and margins, we believe that over time, higher voice and advanced data usage will lead to continued revenue growth. We also see opportunities to further generate revenues in the medium to long-term with the newly introduced mobile number portability and the impending launch of our 3G mobile broadband offerings in early 2009."

 

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