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DiGi scores high

DiGi.Com Berhad (“DiGi”) posted strong results for first quarter ended 31 March 2007 with an after-tax profit of RM246 million, up 33% from the corresponding period last year. Revenue jumped 18% to RM1.01 billion on the back of an enlarged subscriber base of 5.8 million and higher usage across the customer base.

DiGi Chief Executive Officer Morten Lundal said: “More and more Malaysians are getting to know about and enjoy the quality and functionality of DiGi’s network. Our progress is directly attributable to us focusing on what most people care most about, the fundamental qualities of the voice and data services.”

Compared to Quarter 1 last year, blended average revenue per user increased from RM54 to RM59. “We are happy to see that most people use DiGi’s services more, which we see as a testimony that our customers are finding DiGi offerings very relevant to their daily lives,” said Lundal.

Earnings before interest, tax, depreciation and amortisation (“EBITDA”) rose from RM390 million to RM497 million. The good revenue growth, lower marketing and sales expenses and higher traffic within the DiGi network strengthened EBITDA margin from 45.3% to 49.0%, resulting in a profit before tax (PBT) of RM339 million, up 32%.

Earnings per share climbed 33% from 24.6 sen to 32.8 sen.

Comparing quarter to quarter, PBT jumped by 15% to RM339 million in Q1 2007 from RM294 million in Q4 2006. This was attributed to a 5% revenue growth and lower marketing expenses.

Subject to shareholders’ approval at the Annual General Meeting on 8 May, DiGi will pay on 15 June a final dividend of 57.5 sen per ordinary share less 27% income tax for the financial year ended 31 December 2006. The entitlement date is 31 May 2007.

About Kugan

Kugan is the founder of MalaysianWireless. He has been observing the mobile industry since 2003. Connect with him on Twitter: @scamboy