Tuesday June 8, 2010
By LEONG HUNG YEE
hungyee@thestar.com.my
SHAH ALAM: DiGi.Com Bhd, which has embarked on a cost-saving initiative to ensure the group is able to withstand challenges in the competitive industry, is on track to achieved RM100mil savings this year.
Newly-appointed chief executive officer Henrik Clausen said the group had managed to save RM37mil in the first quarter and was well on track to achieve its target.
He said the telco was looking at savings from every aspect of its processes, including procurement, maintenance and sourcing.
“We are in an industry where there is a lot of pressure from competition in the market, and to be able to compete, we need to be smart in the way we operate our business,” he said at a briefing yesterday.
Henrik Clausen ... ‘Sabah and Sarawak are part of our aggressive expansion.’
Clausen took over DiGi’s helm effective May 17 from Johan Dennelind.
Going forward, he said DiGi would be expanding further by capitalising on segments they are strong in, such as the youth segment.
He said its earnings before interest, tax, depreciation and amortisation (EBITDA) margin for 2010 might be pressured due to higher level of handset subsidies.
To a question, Clausen said the guided EBITDA for the year was 43% but aimed to grow its revenue above the industry average.
On its 3G network coverage, he said the group was playing catch up. DiGi’s 3G network currently covers some 30% of populated areas. By year-end the coverage will be about 50%.
Asked what the Government could do to further improve the mobile telecom industry, he said equal access to resources for players was important.
“What the Government and regulators can do is to make access to resources and frequencies on equal and transparent terms.
“It will drive competition and can lower price levels besides driving expansion of network throughout Malaysia,” Clausen said.
On DiGi’s presence in Sabah and Sarawak, he said the telco was doing “pretty well” and intended to expand its network there.
“Sabah and Sarawak are part of our aggressive expansion going forward, comprising voice and data network,” he added.
Recently, DiGi announced that its wholly-owned subsidiary DiGi Tel and Baraka Telecom Sdn Bhd have terminated their mobile virtual network operator agreement.
Clausen said there were “something lined up” but did not provide details. “We’ll announce that when we get closer to that.”
Asked if DiGi would venture into the fixed broadband market, he said: “Never say never. Our focus for the time being is the mobile broadband.”
http://biz.thestar.com.my/news/story.asp?file=/2010/6/8/business/6421429&sec=business
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