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Digi aims to be leading mobile Internet provider, 11.4 million subscribers as of 2014

Digi.Com Berhad (Digi) announced its fourth quarter 2014 financial results yesterday. It said data revenue grew 17.4% from a year ago primarily driven by strong demand for Internet services, proliferation of a wider range of smartphones, and continuous expansion of good quality coverage to more areas around Malaysia.

Digi’s management team (Left to right): Haroon Bhatti, Chief Human Resource Officer; Christian Thrane, Chief Marketing Officer; Lars Norling, Chief Executive Officer; Albern Murty, Chief Operating Officer; Karl-Erik Broten, Chief Financial Officer unveiling the new logo.

Digi’s management team (Left to right): Haroon Bhatti, Chief Human Resource Officer; Christian Thrane, Chief Marketing Officer; Lars Norling, Chief Executive Officer; Albern Murty, Chief Operating Officer; Karl-Erik Broten, Chief Financial Officer.

Digi has 11.4 million (11,421) mobile subscribers as of the end of 2014. There are 9.7 million prepaid and 1,721 million postpaid subscribers. Out of these numbers, Digi currently has about 6.4 million Internet subscribers and 49.3% of DiGi subscribers are smartphone users.

In terms of usage, the average revenue per user (ARPU) for Prepaid is at RM41 while Postpaid ARPU is at RM83.

In terms of network, Digi said that over the last 4 quarters, the Telco has grown its 4G LTE footprint, focusing on areas with strong demand for the service, supported by device availability, and where Digi can make a real difference. Digi’s 4G LTE services are currently available at nine (9) locations: Klang Valley, Penang, Kampar (Perak), Johor Bahru, Kuching (Sarawak), Miri (Sarawak), Kota Kinabalu (Sabah), Tawau (Sabah), and Labuan.

In 2014, Digi invested RM904 million to strengthen its infrastructure capabilities which included the delivery of “a brand new convergent billing system”, expansion of 3G population coverage to 86%, growth of LTE sites to nine market centers and increase in fibre network to more than 4,700km (with Celcom Axiata).

Looking ahead in 2015, Digi said the key priorities will be to continue the drive on Internet growth opportunities supported by “excellent on-ground execution and delivering stronger infrastructure capabilities” for customers to enjoy best Internet experience on Digi’s network.

In tandem with the refreshed branding, Digi will focus on the 4 key propositions ie Digi Live, Digi Value, Digi Easy and Best For Internet to take a “deeper customer-centric approach and service excellence”.

Digi’s CEO Lars Norling said “The future is all about the Internet. Our focus is to ensure everyone has access to quality, relevant, inspiring and value for money Internet services. Towards this end we will continue to enhance our infrastructure and capabilities to deliver the best Internet experience for customers, while taking a deeper customer-focused approach and commitment to service excellence.

“We aim to be the leading mobile Internet provider for mass market by making access to the Internet easy, seamless and enjoyable through our high-speed network, competitive smart device bundles and plans, and good user experience. In the coming months, we plan to grow our Postpaid business across consumer and business segments, while maintaining our leadership in Prepaid, building on Digi’s distinctive brand promise introduced in conjunction with our refreshed brand launch recently. We believe that the solid foundation we have built for a data business positions us strongly to deliver on our promise to customers and drive data growth,” Norling said.

Digi said it maintained resilient growth across revenue, earnings before interest, tax, depreciation and amortisation (EBITDA), and profit after tax (PAT), for the full year under review. Revenue grew by 4.2% to RM7.0 billion in 2014 (2013: RM6.7 billion), while EBITDA and EBITDA margins held steady at RM3.2 billion and 45% respectively (2013: RM3.0 billion and 45%). PAT climbed to RM2.0 billion, 19.1% higher than a year ago (2013: RM1.7 billion).

The company announced that it will pay a fourth interim tax exempt dividend of 7.2 sen per ordinary share equivalent to RM560 million or 100% payout ratio to shareholders on 13 March 2015. Total dividend payout for the year increased by 22.1% (4.7 sen) to 26.0 sen.

About Kugan

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