DiGi’s Q2 revenue rises 5.6%, Internet revenue up 39.6%
By Digital News Asia July 18, 2014
- Internet customers up to 4.3 million, 41.9% of its 10.9 million customers on smartphones
- EBITDA and profit after tax (PAT) up by 6.4% and 31.3% year-on-year respectively
MOBILE services provider DiGi.Com Bhd reported second-quarter 2014 revenue rose 5.6% year-on-year to RM1.746 billion (US$546.56 million), boosted by Internet revenue growth which increased 39.6% compared to the same quarter last year.
In announcing its financial results on July 17, DiGi said its “healthy growth momentum in the second quarter was fuelled by increased demand for Internet services on its modernised high-speed data network.”
“We’ve been persistent in driving quality experience on our brand new network, enhancing voice stability and ensuring effective data network management to give customers consistent and stable data speed, especially on commonly used mobile applications,” said its outgoing chief executive officer Henrik Clausen (pic).
“Additionally, we continued to expand our 3G HSPA+ coverage to 82.7% of populated areas, and grew our fibre network to 4,400km.
“In recent months, we’ve leveraged on our stronger network capability and wider coverage to reach out to more customers and drive Internet consumption. We’ve proactively made Internet services part of our core offering across various customer segments,” he said in a statement issued by DiGi.
During the quarter, DiGi grew its Internet customers to 4.3 million. Smartphone penetration among its 10.9 million customers also increased to 41.9% from 30.4% a year ago.
For the quarter under review, earnings before interest, tax, depreciation and amortisation (EBITDA) and profit after tax (PAT) increased by 6.4% and 31.3% year-on-year to RM795 million and RM499 million respectively. EBITDA margin improved to 46%.
[RM1 = US$0.31]
“We’ve invested RM193 million in capital expenditure during the quarter (Q1 2014: RM202 million) to grow and improve our network, and we’re on track to spend up to RM900 million to continue strengthening our network position,” said Clausen.
“Our ambition is to grow our 3G HSPA+ footprint to 86% of the population, increase our LTE sites to 1,500 nationwide and expand our fibre network by the end of this year to ensure customers continue to enjoy quality experience on our network.
“In tandem, we’ll also be introducing relevant and innovative new device and service offerings to further encourage Internet usage on DiGi’s network,” he added.
In view of a stronger earnings per share (EPS), DiGi announced that it will pay a second interim tax exempt dividend of 6.4 sen per ordinary share, an increase of 33.3% compared to the same quarter last year and equivalent to RM498 million or 99.7% payout ratio payable to shareholders on Sept 5 2014.
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