DiGi 2Q net profit up 24.8% to RM250m

DiGi.Com Bhd posted RM250.32 million net profit in the second quarter ended June 30, 2007, up 24.8% from RM200.6 million a year ago boosted by higher mobile revenue and improvement in the average revenue per user (ARPU).

Announcing the results on July 20, it also declared gross interim dividend of 68.5 sen per share, amounting to RM314.8 million.

The entitlement date is Aug 8. Revenue rose 17% to RM1.05 billion from RM903.7 million a year ago. Earnings per share was 33.4 sen compared with 26.7 sen a year ago.

For the first half, the net profit was RM496.32 million for the first six months ended 30 June 2007, up 29% from the same period last year.

Revenue rose 17% to RM2.07 billion from RM1.76 billion, on the back of increased usage and a larger customer base.

Total customer base rose 11% to six million amid intense competition and a maturing market. Attractive festive promotions and a segmented market approach led to higher voice traffic and increased blended average mobile revenue per user to RM58 from RM54 in 2006.

DiGi chief executive officer Morten Lundal said he was pleased with the results, especially in boosting usage and growing customer base in target markets. “Our focus on operational efficiency has also paid off,” he said.

DiGi’s higher revenue boosted earnings before interest, tax, depreciation and amortisation (EBITDA) to RM999 million, up 25%. The solid revenue growth and increased cost efficiency also strengthened EBITDA margin to 48% from 45% previously in 2006.

Lundal said he was confident the company would continue a good growth momentum in the second half of the year, targeting a mid-teens revenue growth. “We are ready for new challenges that come with a maturing market.

We will continue our creative and competitive approach to further widen our customer base and grow revenue,” he said.

This included the recently launched DiGi Postpaid 1Plan that offers only 13 sen per minute for calls to anyone on any network, anytime and anywhere in Malaysia with a minimal monthly commitment of RM70.

DiGi’s cash and cash equivalents rose to RM1 billion as at June 30, 2007 from RM869.55 million as at Dec 31, 2006. Net assets per share was RM2.58.