Digi maintains data momentum in Q1 2015

• Year-on-year revenue up 4.2% to RM1.79bil
• Focus on strengthening network and delivering brand promise

SMARTPHONE ownership on Digi.Com Bhd’s network grew to 53.2% in the first quarter this year (Q1 2015), while the data momentum seen in 2014 continued to pick up in 2015, with data revenue rising by 17.7% from a year ago.
 
Digi’s data revenue now accounts for 42.3% of the group’s overall service revenue, up 5.6 percentage points from the same period last year, the company said in a statement.

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During the quarter, Digi’s revenue grew by 4.2% to RM1.79 billion (US$497.3 million), compared with RM1.72 billion (US$477.8 million) in Q1 2014.
 
However, earnings before interest, tax, depreciation and amortisation (EBITDA) and EBITDA margins leveled to RM775 million and 43% respectively, compared with RM778 million and 45% in Q1 2014, due to seasonally higher device sales and impact from lower margins, the company said.
 
Q1 2015 PAT (profit after tax) normalised to RM479 million during the first quarter, compared with RM485 million in Q1 2014, in the absence of prior years’ tax benefits.
 
[RM1 = US$0.28]
 
Digi said it recorded strong subscriber growth during the quarter, strengthening its customer base by 270,000 to 11.7 million. Postpaid subscription also significantly bolstered to a record three-year high in the quarter.
 
The increased number of Internet subscribers, which grew rapidly by 30.6% to more than 6.6 million customers at the end of the first quarter, will pave the way for future service revenue, it added.
 
“We have made strong inroads in bringing quality Internet services to more Malaysians nationwide,” said chief executive officer Albern Murty (pic).
 
“[This was] fuelled by significant improvements in our network performance and coverage, the proliferation of a wider range of affordable smartphones bundles including choices under RM200, and innovative digital service offerings.
 
“These efforts have helped drive continuous growth in Internet adoption, and encouraged ownership of more than one device which is connected to the Internet,” he added.
 
Albern said Digi was committed to investing the same level it did in capital expenditure (capex) in 2014 (RM904 million) to continue driving Internet growth.
 
Digi said it has grown its 3G (Third Generation) population coverage to 87% while steadily expanding its 4G LTE (Fourth Generation/ Long-Term Evolution) footprint to 33% population coverage at the end of the quarter.
 
The company announced that it will pay a first interim tax exempt dividend of 6.1 sen per ordinary share equivalent to RM474 million or 99% payout ratio to shareholders on June 5 2015.
 
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