Malaysia's Digi Reports Full-Year Revenues Up 10%

Malaysian mobile operator, DiGi has reported an after-tax-profit of RM1.1 billion (US$304 million) on the back of a 10% growth in revenue to RM4.8 billion (US$1.3 billion) in 2008. The rise in revenue was driven by steady demand for mobile services and an increase in subscriber base to 7.1 million at the end of 2008. Average revenue per user (ARPU) maintained at RM59 (US$16.35).

Commenting on DiGi's performance in 2008, chief executive officer Johan Dennelind said, "We are pleased to have met our financial guidance despite intense competition and a more challenging macro-economic environment towards the second-half of 2008. Encouragingly, we are gaining positive momentum for our postpaid business as seen in the significant increase in subscriber base by 56%, surpassing the 1 million mark."

Year-on-year, DiGi's earnings before interest, tax, depreciation and amortisation (EBITDA) rose to RM2.2 billion (US$609 million). As expected, EBITDA margin decreased to 45.1% due to competitive price pressure, higher traffic and network operating costs as well as increased sales and marketing expenses.

Profit before tax (PBT) was RM1.5 billion (US$416 million), up 7% from RM1.4 billion in the previous year resulting from increased revenue and EBITDA.

Comparing the quarter's results with the same period last year, the Group's revenue grew by 5% to RM1.2 billion. EBITDA for the quarter was RM536.3 million with a margin of 43.5%, affected by higher traffic costs and slightly lower ARPU of RM58. DiGi's PBT and PAT for the quarter stood at RM381.8 million and RM282.2 million respectively.

Looking forward, DiGi sees a challenging year ahead but remain cautiously optimistic of growth opportunities. Dennelind adds, "We are excited to be able to bring internet to the people with the launch of our 3G and mobile broadband services soon. It will open up new revenue streams for the Company and more importantly, an opportunity for DiGi to bring a fresh broadband experience to Malaysians."

Posted to the site on 6th February 2009