News From Telecom World

DiGi revenues up 10%, profit down 1% on marketing spend

Posted on: October 28, 2008

Malaysian cellco DiGi has reported that its third-quarter net profit fell by 1% year-on-year to MYR269.9 million (USD74.9 million) on higher advertising spending. During the three months ending 30 September 2008, the country’s third largest mobile operator said that revenues rose nearly 10% y-o-y to MYR1.22 billion, while the EBITDA margin fell to 45.6%, against 47.9% in the same period last year, due to pressure from higher traffic and network operating costs.

The company added 166,000 net new customers during the quarter, comprising 126,000 new post-paid and 40,000 pre-paid users. At end-September it had 5.83 million pre-paid customers and 976,000 contract subscribers; a total of 6.8 million. CEO Johan Dennelind said in a statement, ‘We believe that over time, higher voice and advanced data usage will lead to continued revenue growth…We also see opportunities to further generate revenues in the medium to long-term with the newly-introduced mobile number portability and the impending launch of our 3G mobile broadband offerings in early 2009.’ DiGi Telecommunications is wholly owned by holding company DiGi.Com, which is itself 49% owned by Norway’s Telenor.

Source: TeleGeography


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