DiGi posts RM278m net profit in 1Q10

Written by Surin Murugiah

Tuesday, 04 May 2010 13:07


KUALA LUMPUR: DIGI.COM BHD [] net profit for the first quarter ended March 31, 2010 rose to RM278.26 million from RM275.44 million a year ago, on the back of a 6% increase in revenue to RM1.3 billion.
The company had on Tuesday, May 4 also declared a first interim dividend payout of 35 sen per ordinary share of 10 sen each, payable on June 18, 2010.
Earnings per share rose to 35.80 sen from 35.40 sen a year earlier, while net assets per share was RM1.77.
Its outgoing chief executive officer John Dennelind said the result was due to encouraging subscriber acquisitions in its prepaid segments, higher usage of mobile internet services and growing brand strength across its segments.

He said the group's subscriber base was currently at 7.9 million customers, a year-on-year increase of almost 10%.
Average revenue per user (ARPU) was somewhat lower at RM53 compared to RM56 recorded in the same quarter last year, primarily because of lower end-user prices driven by a very competitive market place in which DiGi is committed to deliver the best deal to customers, he said.
He said DiGi's earnings continued to remain strong, adding that for 1Q10 earnings before interest, tax, depreciation and amortisation (EBITDA) increased by 6% to RM576 million, while margin strengthened to 44.6%.
On its outlook for 2010, Dennelind said DiGi was targeted to maintain the year-on-year growth pace and end up above industry growth.
He said this was supported by continued growth in key areas, especially in mobile internet for big and small screens, but also through continued market share gain.
The margins will continue to be under pressure from higher handset subsidies, lower prices in key segments and from mobile Internet expansion costs, he said.
This will, to a high degree, be compensated by cost optimisation programmes across the company that continue to deliver significant savings, he said.
"The future looks bright for DiGi, and we will continue to invest in delivering excellent customer experience through our brand and touch points for our customers, sustaining profitable growth in key segments and around mobile internet.
"We will also step up operational efficiency through further cost and asset optimisation. In short, we are confident that we can maintain a healthy financial structure to support the growth of the business in efforts to continue delivering superior returns to our shareholders," said Dennelind.
http://www.theedgemalaysia.com/business-news/165271-flash-digi-posts-rm278m-net-profit-in-1q10.html