DiGi completes network modernisation, reports Q3 revenue up 7.4%

• Q3 Internet revenue increased 52.4% to RM320 million from corresponding quarter last year
• Plans to have 1,500 LTE sites by end-2014, rolling out fibre to deliver high-speed mobile Internet

CELLULAR company DiGi.Com Berhad (DiGi), whose operating unit is DiGi Telecommunications, said it has completed its nationwide network modernisation exercise, a key milestone that would enable it to deliver on its ‘Internet For All’ mission.
 
In tandem, it has equipped its network nationwide with HSPA+ (High Speed Packet Access) technology, and exceeded the rollout of its 3G footprint to 76.1% from approximately 60% a year ago, the company said in a statement.
 
“Data is a significant growth area for DiGi,” said its chief executive officer Henrik Clausen (pic) when announcing the company’s third quarter financial results.
 
“Our Internet customers have increased steadily from 5.8 million a year ago to almost 6.8 million today. With the final completion of our network modernisation nationwide, we believe our customers will now be able to fully enjoy a network that delivers greater stability and quality, over a larger footprint.
 
“A strong data network is a necessary building block to ensure we deliver the right Internet experience to our growing base of customers, and will give us the impetus to drive stronger data adoption in the longer term.
 
“To this end, our focus on driving significant enhancements to our network performance has resulted in improvements in Drop Call Rate and Minutes Per Drop by 33% and 59% respectively,” Clausen claimed.
 
Meanwhile, DiGi said its revenue was up 7.4% to RM1.7 billion in the third quarter of 2013 compared with the same quarter last year. This was fuelled by stronger prepaid service revenue from a larger subscriber base of 10.8 million customers.
 
Internet revenue continued to deliver solid growth, increasing 52.4% to RM320 million from the corresponding quarter last year.
 
Earnings before interest, tax, depreciation and amortisation (EBITDA) and EBITDA margin were RM766 million and 45% respectively, up 7.1% from the same quarter last year, DiGi said.
 
Profit-after-tax (PAT) was the strongest over the past five quarters at RM449 million, 42.5% higher than the same quarter last year.
 
[RM1 = US$0.32]
 
“Initiatives introduced during the quarter such as entry-level smartphones and bundles, targeted bite-sized plans, and new roaming packages bundled with value rewards and Internet, have been gaining traction with subscribers,” Clausen said.
 
“These initiatives further encouraged Internet usage and have resulted in improved smartphone adoption to 34.0% of our total customer base.
 
“In the coming months we will drive a deeper focus on delivering a truly customer-focused business by building on innovations we have introduced to the market such as the new MyAndroid hub retail space concept, and other relevant digital and connected services.
 
“In addition we will invest in accelerating the rollout of 3G coverage, expanding our LTE (Long Term Evolution) footprint to key urban centres with a target of achieving 1,500 sites by end 2014, and rolling out fibre to deliver high-speed mobile Internet services to our customers,” he added.
 
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