DiGi Q2 revenue up 3.4%, fuelled by mobile Net growth

• Attributes growth to network quality and coverage improvements; expanded customer base
• Mobile Net growth driven by take-up of mid- to low-priced smart devices, bundled Internet for prepaid subscribers

CELLULAR company DiGi.Com Berhad (DiGi) recorded second quarter revenue of RM1.653 billion, up 3.4% from RM1.526 billion in the previous quarter, driven mainly by mobile Internet revenue which grew 10.6% quarter-on-quarter, from a larger base of 6.8 million subscribers.
 
Earnings before interest, tax, depreciation and amortisation (EBITDA) and EBITDA margin were RM747 million and 45% respectively, 3.8% stronger than the first quarter of the year, the company said in a statement.
 
Profit-after-tax (PAT) was RM380 million, 15.5% higher than the previous quarter, and the strongest recorded PAT over the past four quarters, DiGi said.
 
[RM1 = US$0.31]
 
“Our growth is largely attributed to significant improvements in our network quality and coverage, our continued focus to deliver relevant and affordable service offerings, and an expanded customer base,” said chief executive officer Henrik Clausen (pic).
 
“By the end of the quarter we had successfully swapped 85% of our sites nationwide, expanded our 3G network footprint to 72% of populated areas, and made further gains on our network quality and customer focus initiatives, which will continue to be a priority for the rest of the year.
 
“Growth was also driven by the larger take-up of mid- to low-priced smart devices, bundled internet offerings for prepaid subscribers, and stronger postpaid subscriber acquisition,” he added.
 
In early July, DiGi added LTE services at high traffic locations in the Klang Valley as part of its overall suite of Internet service offerings. The company said it would be investing about RM650 in the next three years to gradually expand its LTE coverage to key urban centres nationwide, targeting 1,500 sites by the end of 2014 .
 
“This will be done in tandem with the expansion of our 3G population coverage to more than 75% of populated areas by end-2013, the upgrade of our network to HSPA+, and the further rollout of our fibre build to enable the efficient delivery of high-speed mobile Internet services to our customers,” said Clausen.
 
DiGi announced that it will pay a second interim tax exempt dividend of 4.8 sen per ordinary share equivalent to RM373 million or 98% payout ratio payable to shareholders on Sept 6.
 
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