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DiGi 3Q net profit slides 9.6%

28 Oct 2009

Malaysian mobile network operator DiGi Telecommunications has released its financial results for the three months ended 30 September 2009, revealing a 9.6% year-on-year drop in net profit to MYR269.9 million (USD76.9 million). The company attributed the decline to higher depreciation and amortisation expenses, alongside increased finance costs. Revenue for the three-month period rose, up 1.3% y-o-y to MYR1.24 billion, although average revenue per user (ARPU) fell from MYR59 to MYR55, which DiGi said was a result of decreased spend by low income customers as a result of the weak economic climate, as well as increased competition. Commenting on the results, Johan Dennelind, DiGi’s chief executive, said: ‘We are seeing positive indicators signalling an upward momentum from the relatively flat start this year.’ The operator also reiterated plans to spend a sizeable chunk of its total CAPEX, which it estimates will be MYR700 million in this fiscal year, on the rollout of its 3G network , with Dennnelind noting ‘Our future growth is in internet and we will continue to invest to bring relevant and affordable internet to the [public].’

DiGi’s subscriber base at end-September 2009 reached 7.4 million, up 9% against the 6.8 million it reported a year earlier.

Malaysia, (CelcomDigi) Digi

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