Enhancing customer experience a key focus for DiGI

By Goh Thean EuPublished: 2010/06/08


DIGI.COM Bhd (6947), the country's third largest mobile operator, believes the key to growing its market share and revenue is by treating and understanding its customers better.


"Mobile services is becoming a commodity, so the only way we can differentiate ourselves is by giving better customer experience to our customers," said its new chief executive officer Henrik Clausen in a media briefing in Shah Alam yesterday.


DiGi's first quarter net profit grew 1 per cent to RM275 million, while sales grew by 6 per cent to RM1.22 billion. It also added about 200,000 new customers during the quarter.


In comparison, DiGi registered higher revenue growth against market leader Maxis Bhd, which saw sales growing by 1.1 per cent in the first quarter. However, it did not grow as much as Celcom Axiata Bhd's 15 per cent in the same period.

In terms of earnings, DiGi and Maxis posted similar net profit growth, as Maxis' net profit rose by 0.9 per cent, while Celcom grew earnings by 24 per cent.

The company aims to capture one-third of market share over the long term. To do that, it believes it needs to maintain its "challenger mindset".

"We want to win the war every day, we want to do better than our competitors every day," he said.

Clausen said another key for the company's success is to strike the right balance between its price offering for consumers and the cost of investments. The company aims to spend RM700 million on capital expenditure this year.

The company said it is on track to save RM100 million this year, from various aspects of its business, including procurement. For the first three months alone, it has managed to save some RM37 million through various cost-efficiency initiatives.

"In order to be successful in the industry, to be able to compete, we need to be smart in terms of the way we spend our money," he said.

Clausen joined DiGi almost a month ago on May 17. He began his telecommunications career in 2000 when he was appointed the CEO of Cybercity, the second fixed broadband and Internet service provider in Denmark.

In 2005, Telenor acquired Cybercity and Sonofon, and Clausen was appointed CEO to both companies, as well as head of Telenor Denmark Holding.

He believes Ebitda (earnings before interest tax, depreciation and amortisation) will face pressure this year, and expects the margin to decline to 43 per cent from 44.6 per cent currently.


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