Update DiGi 1Q net profit jumps to RM485.16m, declares 6.2 sen interim dividend

by **Cals** Sat 26 Apr 2014, 18:17

Update DiGi 1Q net profit jumps to RM485.16m, declares 6.2 sen interim dividend

Business & Markets 2014

Written by Surin Murugiah of theedgemalaysia.com

Friday, 25 April 2014 14:10

KUALA LUMPUR (April 25): DiGi.Com Bhd net profit for the first quarter ended March 31, 2014 jumped to RM485.16 million from RM328.65 million year earlier, on the back of revenue of RM1.72 billion versus RM1.65 billion a year earlier, driven mainly by a strong boost in usage of mobile internet services.

The telecommunications company also declared a first interim tax exempt (single-tier) dividend of 6.2 sen per share totaling RM482 million or 99.4% payout ratio to be paid to shareholders on June 6 this year.

Earnings per share was 6.24 sen compared to 4.23 sen a year earlier, while net assets per share was 80 sen.

In a statement Friday, DiGi CEO Henrik Clausen said that the healthy growth in internet revenue was fueled by higher usage and a bigger customer base in the internet segment.

“Our focus in making access to internet services easy and relevant has encouraged stronger adoption among our 10.9 million customers, and an overall increase in new internet customers within our base.

“The introduction of our 'Best for Internet' campaign offering flexible and bite-sized plans, comprehensive service bundles, and unlimited access to selected digital services, gave different customer segments customised options that better address their needs,” he said.

Clausen said DiGi’s stronger, more stable network, and expanded network coverage had also allowed it to bring high quality internet connectivity to more Malaysians, in more areas across the country.

“Our persistent focus on delivering quality experience for customers has resulted in significant improvements to our network performance.

“Our customers now enjoy more consistent data speeds with enhanced voice stability on our network, and this has helped stimulate usage of mobile internet among our base,” said Clausen.

He said during the quarter, DiGi had expanded its 3G Evolved High-Speed Packet Access (HSPA+) footprint to 82% of the population, increased its LTE sites in Klang Valley, Johor Bahru and Kota Kinabalu, and grew its fibre network to more than 4,100km.

He said the company had committed to invest up to RM900 million in capital expenditure this year to strengthen its network position to deliver on its promise of best internet experience to more customers in Malaysia.

“In the coming months, we will continue to introduce game-changing innovations that will allow our customers to enrich their internet experience on our brand new network.

“We will do this while driving deeper quality and focus on customer experience, and bringing internet services to more Malaysians,” Clausen said.