Telenor’s DiGi sees 33% revenue growth in H1

DiGi.Com Berhad (DiGi), Telenor ASA’s mobile operation in Malaysia, on July 22 announced higher revenue of MYR 793.0 million for the first half year ended 30 June 2003, an impressive growth of 33% as compared with the previous corresponding period.
     DiGi’s Norwegian chief operating officer, Tore Johnsen said the company has clearly been seeing consistent and satisfactory revenue growth.
     “This is directly attributable to the fact that our growing customer base has come to recognize and appreciate DiGi’s strong commitment to providing Malaysians with a high-quality mobile communication experience,” he commented on the company’s performance.
     The stronger operational performance this half year was evident in the 47% increase to MYR319.0 million in earnings before interest, tax, depreciation and amortization (EBITDA), with EBITDA margins improving to 40% from the 36% previously recorded. The consistent revenue growth was strongly driven by DiGi’s steadily expanding mobile customer base.
     The financial results were, however, impacted by the higher depreciation and amortization expense of MYR209.2 million as compared with MYR85.9 million in the previous corresponding half year. Higher depreciation rates were used with effect from 1 July, 2002. As a result, the group’s profit after taxation of MYR53.0 million was 26% lower than the MYR72.1 million recorded in the previous corresponding period, while earnings per share was 7.1 sen as compared with 9.6 sen previously.
     Similarly, revenue for the 2nd quarter ended 30 Jun 2003 grew by 29% to MYR398.5 million as compared with the previous corresponding quarter, while EBITDA margins improved to 39% from 35% previously. However, the group’s profit after taxation for the 2nd quarter of 2003 fell 36% to MYR23.1 million resulting from a 142% increase in depreciation and amortization expense of MYR105.3 million.
     Telenor early July said its second quarter net profit swelled 52% to NOK1.683 billion. Its EBITDA rose 35% to NOK4.35 billion, above market expectations of NOK3.98 billion.

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