Digitel: wireless business drives 16% growth in revenue in H1

16 Aug 2011

Filipino fixed and mobile operator Digital Telecommunications Philippines Inc (Digitel) has booked first-half consolidated revenue of PHP9.26 billion (USD218.6 million), up 16.1% from PHP7.98 billion in the first six months of 2010, fuelled by 23% growth at its Sun Cellular-branded wireless business. Service revenue reached PHP4.65 billion, up 15.8% year-on-year, while cost control measures saw EBITDA climbing 24.7% to PHP3.43 billion from PHP2.75 billion; EBITDA margin was 37.5% from 34.9% in 1H10. Digitel said net income of PHP147.0 million compared favourably with the PHP145.4 million figure posted in the same period a year ago, driven by a strong performance at its mobile arm. Sun Cellular posted revenue of PHP7.68 billion, up 23% y-o-y, as the cellco increased its base to 15 million subscribers – comprising 13.60 million pre-pay and 1.40 million contract users. Mobile EBITDA leapt 48.9% year-on-year to PHP2.98 billion, Digitel said, helping to offset a 10.1% y-o-y fall in wireline (voice) revenues to PHP1.34 billion on the back of falling returns from international and domestic tolls, and local exchange services. Although Digitel’s wireline business reported a halving in EBITDA to PHP295.3 million, on a more positive note the unit’s fixed data business reported an upturn, with revenues rising 1% to PHP241.6 million thanks to a rise in IP VPN services.