DiGi 1QFY13 up 2.5% to RM328.65 million

by **Cals** Tue 23 Apr 2013, 17:29

DiGi 1QFY13 up 2.5% to RM328.65 million
Business & Markets 2013
Written by Kamarul Anwar of theedgemalaysia.com
Tuesday, 23 April 2013 15:34

A + / A - / Reset
KUALA LUMPUR (April 23): DIGI.COM BHD [] posted a small growth in net profit for its financial quarter ended March 31, 2013 (1QFY13), against the previous corresponding quarter, as it grew by 2.5% to RM328.65 million.

In a filing to Bursa Malaysia, the group said its growth in net profit came mainly due to lower accelerated depreciation.

In 1QFY13, DiGi’s net profit was RM328.65 million on revenue of RM1.65 billion. The previous corresponding quarter’s net profit was RM320.64 million on revenue of RM1.57 billion.

“(Revenue) was 5% higher compared to the same period in 2012, driven by increased data usage, from a larger mobile internet subscriber base of 5.8 million and higher sales of smart devices,” said DiGi in a statement.

The group also attributed the overall growth to its mobile Internet segment, which grew 55% year-on-year. Its 1QFY13 mobile Internet customer base also grew to 5.8 million, including 3 million smartphone users.

Its blended average revenue per user (ARPU), however, dipped by RM2 to RM47. The group explained this was due to its expansion into lower ARPU market and segments where its market share is low, which subsequently diluted its ARPU.

DiGi also said that it generated record-high device sales in 1QFY13, thanks to strong demand for Apple iPhone 5 and Samsung Note II. Additionally, demand for affordable Google Android-based smartphones grew in tandem.

The group's smartphone penetration inched up by 2.1pp quarter-on-quarter to 28.5% and its mobile internet subscribers penetration increased by 1.7pp to 56.3%.

“The take-up (of smartphones) is further fueled by the incentives offered under the government’s Youth Programme where qualifying youths are entitled to RM200 rebates for the purchase of smartphones,” DiGi said.

The group declared a first interim dividend of RM295 million or 3.8 sen per share for 1QFY13. Last year, the dividend came in at 5.9 sen per share.

On future prospects, DiGi said the completion of key initiatives under its business transformation programme will enable it to capture a bigger share of data revenues and grow its business in the long term.

Currently, the group is modernising its voice and data network, information systems and information TECHNOLOGY [] infrastructure, and go-to-market channels, with key projects due for completion by end 2013.