DiGi net profit up 51%
Continued positive momentum in Q3
SHAH ALAM, 19 October 2007: DiGi.Com Berhad ("DiGi") recorded a 51% jump in net profit to RM273 million for the third quarter ended 30 September 2007 compared with the corresponding period in 2006.
This was achieved on the back of RM1.11 billion revenue, attributed to a bigger subscriber base of 6.1 million and higher blended average revenue per subscriber of RM59.
The Board of Directors has declared a special dividend of RM1.00 per ordinary share, less 27% income tax in respect of financial year ending 31 December 2007. The dividend payment date will be determined later.
DiGi Chief Executive Officer Morten Lundal said, "We made significant gains from target market offerings, good network quality and stronger brand equity. We have focused on customer satisfaction, giving customers more reasons to increase usage and at the same time attracted new subscribers."
Lundal said, "The Malaysian market is very competitive, but DiGi benefits from standing out as a unique combination of innovation, simplicity and best value."
The success of continuous cost optimisation and economies of scale effects led to a 26% increase in earnings before interest, tax, depreciation and amortisation ("EBITDA"), strengthening EBITDA margin to 47.3%. As a result, pretax profit rose by 46.9% from Q3 2006 to RM375 million.
Comparing Year-to-date 2007 and 2006
In the first nine months of this year, DiGi's revenue jumped 19% to nearly RM3.19 billion on the back of a 9% increase in subscriber base and higher average usage per subscriber compared with the corresponding period last year.
Non-voice revenue continued to grow and contributed 19% of total mobile revenue to reflect consistent higher data usage.
EBITDA grew by 25% from RM1.22 billion to RM1.53 billion as a result of higher efficiency in spending and greater economies of scale. This further strengthened the EBITDA margin to 47.9% from 45.4% last year.
The strong operating results produced a pretax profit of RM1.06 billion, up 33%, while profit after tax rose 36% to RM770 million.
Earnings per share rose to 102.6 sen against 75.5 sen previously.
Comparing Q3 2007 and Q2 2007, pretax profit jumped 9% to RM375 million on the back of a 5% increase in revenue and relatively lower spending in advertising and promotions.
DiGi aims to continue to drive growth in the increasingly competitive market by leveraging on its strong innovative stance and ability to respond swiftly to changing customer needs.
DiGi is Malaysia's fastest growing mobile operator driving innovation, simplicity and best value through DiGi Prepaid, DiGi Postpaid and DiGi Business.