Wednesday, July 20, 2011

#Update* DiGi 2Q earnings dn 15.1% to RM236.3m on higher depreciation

KUALA LUMPUR: DIGI.COM BHD []'s earnings declined 15.1% to RM236.31 million from RM278.41 million a year ago on accelerated depreciation of RM3213.76 million and also due to premium relating to the up-coming early-redemption of its debt notes.

It said on Wednesday, July 20 that revenue rose 9.7% to RM1.46 billion from RM1.33 billion, earnings per share were 30.4 sen compared with 35.8 sen.

It declared a tax exempt interim dividend of 30 sen per share.

Elaborating on the 2Q financial performance, it said the RM1.5 billion revenue was well-above the RM1.3 billion reported a year ago.

This increase was boosted from higher data usage across all revenue streams, especially from the 113% surge in mobile internet and broadband revenuesr, in addition to higher handset sales.

'The group's average revenue per user (ARPU) of RM50 (2010: RM53) mirrored exactly the year-to-date scenario,' it said.

DiGi said the current quarter EBITDA and EBITDA margin were RM671.9 million and 45.8% respectively; up from the RM578.4 million and 43.3% a year ago.

'This is largely attributed to the strong revenue momentum combined with the increased cost efficiency,' it said.

However, the pre-tax profit and net profit were lower at RM325.3 million and RM236.3 million respectively during the current quarter (2010: RM378.0 million and RM278.4 million respectively)

For the first half, its net profit was up 1.9% to RM567.71 million from RM556.66 million while revenue rose 10.3% to RM2.89 billion from RM2.62 billion.

It said the revenue growth was mainly due to strong data revenue momentum across all revenue streams, particularly from both mobile internet and broadband which grew by 131% year-on-year in tandem with the continued high take-up of device bundles.

Higher handsets sales also contributed to the healthy revenue growth.

'There was a decline in ARPU from RM53 in the previous financial period to RM50 in the current financial period, from the cumulative effect of newly-acquired subscribers with lower spending, margin pressure from increased competition and lower domestic interconnect revenue resulting from the downward revision in regulated mobile termination rate which took-effect from July 2010,' it said.

No comments:

Post a Comment