News Column

DiGi rings up 123pc rise in Q4 profit

February 6, 2014

Francis Dass



KUALA LUMPUR: DIGI.Com Bhd's earnings surged 123.4 per cent in the fourth quarter ended December 31 2013 to RM548.52 million from RM245.52 million a year ago, driven by strong uptake of mobile Internet services.

Its revenue in the period climbed 6.4 per cent to RM1.73 billion from RM1.63 billion. Earnings per share were 7.05 sen compared with 3.16 sen.

For the full year, the telecommunications company's earnings jumped 41.5 per cent to RM1.7 billion from RM1.205 billion previously.

Revenue grew 5.8 per cent to RM6.73 billion from RM6.36 billion in 2012.

Earnings before interest, tax, depreciation and amortisation (Ebitda) and Ebitda margins were RM3 billion and 45 per cent, respectively, against RM2.9 billion and 46 per cent in the financial year 2012.

Following the strong set of results, DiGi announced that it will be paying a fourth and final net dividend of seven sen per ordinary share equivalent to RM544 million, or 99 per cent payout ratio to shareholders, on March 7.

Its chief executive officer Henrik Clausen attributed the completion of the modernising of the company's network as a key factor in driving growth in the fourth quarter.

"We see the strong uptake on mobile Internet as a direct result of our focus on delivering a stronger network experience to our customers.

"During the year, we expanded our HSPA+ enabled 3G network to 80 per cent population coverage, from 67 per cent a year ago, and increased our own and jointly-built fibre network to more than 3,200km nationwide, building the vital backhaul connectivity needed to support always-on, high-speed data experience," he said.

Clausen said the telco also continued to focus on delivering higher quality experience of its network, and this has directly resulted in stronger Internet usage and positive overall customer satisfaction.

"In fourth quarter, we also launched a special year-end 'Thank You' campaign with attractive deals for smartphones and tablets, with voice and Internet offerings.

"We continue to see affordable smartphone and tablets driving Internet usage, especially among prepaid subscribers," he said.

DiGi's Internet revenue in the quarter grew 43.8 per cent over the previous year due to improved usage, higher mobile Internet subscriptions and an overall larger smartphone user base of 38.1 per cent.


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Source: Business Times (Malaysia)


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