Bursa Alert
Global Market
NewsDiGi’s 2Q results lifted by higher data sales
Page 1 of 1
DiGi’s 2Q results lifted by higher data sales
by Cals Tue 22 Jul 2014, 01:24
DiGi’s 2Q results lifted by higher data sales
Business & Markets 2014
Written by JF Apex Research
Monday, 21 July 2014 10:00
DiGi.Com Bhd
(July 18, RM5.60)
Maintain hold with target price of RM5.28: DiGi’s second quarter ended June 30 of financial year 2014 (2QFY14) net income met our expectations after rising 31% year-on-year (y-o-y) to RM499 million. Quarterly sales growth of 6% y-o-y to RM1.75 billion was also within estimate after higher data revenue and device sales made up for lower voice revenue.
Net profit increased 3% quarter-on-quarter (q-o-q) from RM380 million while revenue also gained 2%. Operational wise, earnings before interest, tax, depreciation and amortisation (Ebitda) margin was steady at 46% versus 45% in 1QFY14.
First half (1HFY14) revenue of RM3.12 billion achieved 49.3% of our full-year forecast while 1HFY14 net profit of RM984 million made up 54% of FY14 estimate.
2QFY14 voice revenue was lower at RM970 million (versus 1QFY14’s RM983 million) while data revenue was higher at RM598 million (versus RM571 million in 1QFY14). Device and other revenue improved to RM178 million versus RM164 million in 1QFY14.
DiGi’s blended average revenue per user (Arpu) for 2QFY14 was flat at RM48 versus RM47 in 1QFY14, with postpaid Arpu of RM83 and prepaid Arpu of RM41.
In 2QFY14, DiGi gained 18,000 customers to 10.903 million, arresting the decline in 1QFY14. Its prepaid subscriber base grew by 8,000 to 9.207 million (versus 9.199 million in 1QFY14) while its postpaid subscriber base increased by 10,000 to 1.696 million versus 1.686 million in 1QFY14.
DiGi declared its second interim dividend of 6.4 sen per share, making another 99% payout. We expect FY14 total dividend of 23.4 sen.
Its 2QFY14 operating cash flow was steady at RM602 million (versus RM576 million in 1QFY14) while cash reserves improved to RM403 million from a low of RM372 million in 1QFY14. Net debt-to-Ebitda remained low at 0.1 times.
Following its expected results, we are keeping our earnings per share forecasts for FY14 and FY15 unchanged.
We maintain our “hold” recommendation but with a higher target price of RM5.28 based on discount dividend model as we roll over to FY15 valuation. — JF Apex Research, July 18
This article first appeared in The Edge Financial Daily, on July 21, 2014.
Business & Markets 2014
Written by JF Apex Research
Monday, 21 July 2014 10:00
DiGi.Com Bhd
(July 18, RM5.60)
Maintain hold with target price of RM5.28: DiGi’s second quarter ended June 30 of financial year 2014 (2QFY14) net income met our expectations after rising 31% year-on-year (y-o-y) to RM499 million. Quarterly sales growth of 6% y-o-y to RM1.75 billion was also within estimate after higher data revenue and device sales made up for lower voice revenue.
Net profit increased 3% quarter-on-quarter (q-o-q) from RM380 million while revenue also gained 2%. Operational wise, earnings before interest, tax, depreciation and amortisation (Ebitda) margin was steady at 46% versus 45% in 1QFY14.
First half (1HFY14) revenue of RM3.12 billion achieved 49.3% of our full-year forecast while 1HFY14 net profit of RM984 million made up 54% of FY14 estimate.
2QFY14 voice revenue was lower at RM970 million (versus 1QFY14’s RM983 million) while data revenue was higher at RM598 million (versus RM571 million in 1QFY14). Device and other revenue improved to RM178 million versus RM164 million in 1QFY14.
DiGi’s blended average revenue per user (Arpu) for 2QFY14 was flat at RM48 versus RM47 in 1QFY14, with postpaid Arpu of RM83 and prepaid Arpu of RM41.
In 2QFY14, DiGi gained 18,000 customers to 10.903 million, arresting the decline in 1QFY14. Its prepaid subscriber base grew by 8,000 to 9.207 million (versus 9.199 million in 1QFY14) while its postpaid subscriber base increased by 10,000 to 1.696 million versus 1.686 million in 1QFY14.
DiGi declared its second interim dividend of 6.4 sen per share, making another 99% payout. We expect FY14 total dividend of 23.4 sen.
Its 2QFY14 operating cash flow was steady at RM602 million (versus RM576 million in 1QFY14) while cash reserves improved to RM403 million from a low of RM372 million in 1QFY14. Net debt-to-Ebitda remained low at 0.1 times.
Following its expected results, we are keeping our earnings per share forecasts for FY14 and FY15 unchanged.
We maintain our “hold” recommendation but with a higher target price of RM5.28 based on discount dividend model as we roll over to FY15 valuation. — JF Apex Research, July 18
This article first appeared in The Edge Financial Daily, on July 21, 2014.
Cals- Administrator
- Posts : 25277 Credits : 57721 Reputation : 1766
Join date : 2011-09-08
Location : global
Comments : “My plan of trading was sound enough and won oftener that it lost. If I had stuck to it Iâ€
d have been right perhaps as often as seven out of ten times.â€
Stock Exposure : Technical Analysis / Fundamental Analysis / Mental Analysis
Similar topics» DiGi lifted by the data wave
» KLCI futures close higher, as positive chinese economic data lifted market sentiments
» US Stocks Wall St edges higher on results, data
» US Stocks Wall St higher after strong retail sales data
» Highlight Lower sales, higher operating costs drag down Aeon's 2Q results
» KLCI futures close higher, as positive chinese economic data lifted market sentiments
» US Stocks Wall St edges higher on results, data
» US Stocks Wall St higher after strong retail sales data
» Highlight Lower sales, higher operating costs drag down Aeon's 2Q results
Page 1 of 1
Permissions in this forum:
You cannot reply to topics in this forum