DiGi rings up RM485.15m profit [Business Times (Malaysia)]
(Business Times (Malaysia) Via Acquire Media NewsEdge) KUALA LUMPUR: DIGI.COM Bhd's net profit increased to RM485.15 million in the first quarter ended March 31 2014 from RM328.64 million recorded a year ago.
Group revenue rose to RM1.71 billion in the quarter, from RM1.64 billion in the same period last year, an increase of 4.3 per cent. Earnings per share were 6.24 sen compared with 4.23 sen previously.
DiGi has declared a first interim dividend of 6.2 sen per share, which is equivalent to RM482 million, or a 99.4 per cent payout ratio, on June 6.
The telco operator attributed the solid growth to a strong increase in mobile Internet services usage.
It said the number of Internet customers grew to four million from three million a year ago, while Internet revenue contributed 24 per cent to the group's overall service revenues, an increase of 41.1 per cent to RM374 million from the same quarter last year.
DiGi chief executive officer Henrik Clausen said the healthy growth in Internet revenue was fuelled by higher usage and a bigger customer base.
"Our focus in making Internet services easily accessible and relevant has encouraged stronger adoption among our 10.9 million customers, and an overall increase in new Internet customers within our base," he said in a statement yesterday.
Clausen said the introduction of the company's "Best For Internet" campaign offering flexible and bite-sized plans, comprehensive service bundles and unlimited access to selected digital services, gave customised options.
During the quarter, DiGi expanded its 3G HSPA+ footprint to 82 per cent of the population, increased its LTE (Long Term Evolution) sites in the Klang Valley, Johor Baru and Kota Kinabalu and grew its fibre network to more than 4,100km.
Clausen said DiGi has committed to invest up to RM900 million in capital expenditure this year to strengthen its network and deliver on its promise of the best Internet experience to more customers in the country.
"In the coming months, we will continue to introduce game-changing innovations that will allow our customers to enrich their Internet experience on our new network," he said.
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