Revenue stalls for DiGi in 2Q while net profit drops

23 Jul 2009

Malaysian mobile operator DiGi Telecommunications has released its financial results for the three months ended 30 June 2009, revealing that revenue had remained flat while net profits fell. The operator posted revenue of MYR1.205 billion (USD337.2 million), down 1% against the same quarter a year earlier. Net profit meanwhile was reported at MYR235 million for the quarter, down 15% year-on-year compared to MYR275 in 2Q 2008. Earnings before interest, tax, depreciation and amortisation (EBITDA) also fell, down 4% y-o-y at MYR522 million. Average revenue per user (ARPU) for the cellco also continued its decline, with DiGi attributing the fall to lower usage by lower income subscribers; both pre- and post-paid ARPU in the quarter were down 9% against the same period last year at MYR49 and MYR82 per month respectively. Commenting on the results, Johan Dennelind, DiGi’s CEO, said: ‘We are faced with challenges from the economic recession. We acknowledge revenue and margin pressures due to weakened customer spending, but we are responsive to customers’ call for greater savings.’

Malaysia, Digi Telecommunications