DiGi posts all time high financial results

DiGi.Com Berhad (DiGi) on October 26 announced its all time high financial performance for the nine months ending 30 September 2004, with significant improvements in all key financial and operational performance indicators.
     The group’s pre-tax profit rose 160 percent to MYR312 million, from MYR120 million recorded in the corresponding period last year. This higher pre-tax profit was driven mainly by the 33 percent increase in revenue from MYR1.23 billion to MYR1.63 billion this year. DiGi attributed this significant growth to robust contributions by its attractive mobile offerings, boosting its customer base from 2.06 million to 2.81 million customers, a 37 percent increase.
     “Despite the intensifying competitive marketplace, I am pleased with DiGi’s outstanding performance as reflected by the strong financial and operational efficiencies. The net profit increased by 158 percent to MYR222 million,” said DiGi’s new Chief Executive Officer Morten Lundal, who presented the financial results for the first time.
     The group’s third quarter revenue increased by 33 percent to MYR577 million from MYR434 million in the same quarter last year. The net profit was up 149 percent to MYR83 million from MYR33 million previously. Prepaid customer base rose by 36 percent to 2.65 million from 1.95 million a year ago, while postpaid showed a significant growth of 50 percent to 153,000 from 102,000 in 2003.
     “We also recorded an encouraging take-up for our mobile data services, driving those revenues to 14.5 percent of mobile revenues this quarter,” added Morten Lundal, who also reinforced DiGi’s strategy to leverage on its parent company, Telenor, and its pool of global mobile content and application development initiatives.
     As a result of higher airtime and SMS usage, he continued, postpaid and prepaid average revenue per user (ARPU) remained healthy with blended ARPU increasing to MYR62.
     During the third quarter this year, DiGi aggressively expanded it network as part of its strategy to reach customers in semi-urban and rural market centers. Mr. Lundal affirmed that the group’s outlook for the remaining quarter of the year continues to be positive.
     “We are aiming to grow market share and profitability by delivering the most attractive value proposition to the market place and by ensuring continued cost-effectiveness.”
     He also said that the group will exercise sound investment spending in line with the government’s vision and expectation for nationwide coverage by year end 2005, creating a level playing field where differentiation is based on products and services rather than coverage.

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