Studio Press

DiGi.Com Berhad ("DiGi") increased its pre-tax profit to RM257 million in the first quarter ending 31 March 2006 up 203% from the corresponding period last year. This is largely attributed to a 38% increase in revenue, improved margin on earnings before interest, tax, depreciation and amortisation ('EBITDA') and lower depreciation costs. In a statement on the Group's performance in the first quarter, DiGi Chief Executive Officer Morten Lundal said: "We successfully grew our mobile customer base to 5.1 million and enhanced operational and cost efficiency, generating RM861 million in revenues. Despite keen competition, we held blended average revenue per user at RM54." Lundal said: "The first quarter clearly indicates that DiGi's value propositions are now better known and increasingly the preferred choice by more and more Malaysians. DiGi customers know they can expect more innovations and irresistible valued-added services." There was an all-round increase usage of DiGi products and services, including voice, non-SMS application and SMS. Lundal said: "Mobile data revenue is beginning to show strong potential, growing by 57% to account for 18% of the total mobile revenue compared with 17% a year ago." During the quarter, operational performance posted a 42% increase in EBITDA to RM390 million driven by lower sales and marketing expenses which strengthened EBITDA margin to 45.3% from 44 % last year. Despite a larger capitalised assets base, the Group recorded lower depreciation and amortisation costs. This followed a revision of estimated useful life of certain types of property, plant and equipment last year that captured an additional RM45 million through accelerated depreciation. Profit after taxation recorded a 219% increase to reach RM185 million for the first quarter of 2006 contributing to higher earnings per share of 24.6 sen against 7.7 sen achieved last year. The first capital repayment of 75 sen per share has been approved by the High Court of Malaya and cash payout is expected on 18 May 2006. An Extraordinary General Meeting will be held immediately after the Company's Annual General Meeting on 19 May to seek shareholders approval on the proposed second capital repayment of 60 sen per ordinary share.