DiGi posts solid revenue and profit growth for nine months ended 30 September 2006
Net profit surged by 80% to RM566 million
SHAH ALAM, 20 October 2006: DiGi.Com Berhad (DiGi) continues to grow its revenue and customer base amid intense competition, reporting a net profit of RM566 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 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.”
On Monday, DiGi revised its tariff structure for mobile prepaid services offering a flat rate for all domestic calls to any mobile network operator, with no small print and constraining conditions.
“We are fully committed to give our customers not just best value but also unparalleled simplicity. And we are fulfilling our commitments by being the first mobile operator to let customers make pre-paid calls at an absolutely low flat rate regardless when and who they call. This is a typical DiGi move for pure simplicity and clearly best value in one smart offer,” Lundal said.
Earnings before interest, tax, depreciation and amortisation (“EBITDA”) rose 36% to record RM1.2 billion, 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 million. Earnings per share consequently rose to 75.5 sen against 41.9 sen previously.
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.
PBT showed a strong 28% improvement to RM255 million while PAT registered at RM181 million despite a RM42 million adjustment due to a change in depreciation rates for certain assets from 1 July 2006.
During the quarter, the Group has paid out RM289 million interim dividends at 53.5 sen per ordinary share, less 28% income tax.
DiGi will make its second capital repayment on 27 October 2006. The entitlement date is 16 October 2006.
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 1 st November 2006.
DiGi is Malaysia’s fastest growing mobile operator, driven by innovation, simplicity and best value through DiGi Prepaid, DiGi Postpaid and DiGi Business.
Corporate Communications Department
DiGi Telecommunications Sdn Bhd
Lot 10, Jalan Delima 1/1
Subang Hi-Tech Industrial Park
40000 Shah Alam, Selangor Darul Ehsan