REGAINING MOMENTUM ON SERVICE REVENUE GROWTH
DiGi delivered 4.6% higher revenue y-o-y driven by continued growth momentum on mobile internet (“MI”) revenue supported by stronger mobile internet adoption and increased number of smartphone users in the network. Service revenue grew by 3.8% y-o-y and 3.4% q-o-q whilst EBITDA margin for the quarter increased to 45%.
EXECUTIVE SUMMARY
Overall, Quarter 2, 2013 performance was aligned with plans in regaining momentum on service revenue and margins while anticipating stronger contribution in 2H2013 with completion of network modernisation and expanded 3G coverage.
The quarter recorded a strong q-o-q growth momentum with service revenue increased by 3.4%, EBITDA by 3.8% and PAT by 15.5%. This was driven by positive growth on MI revenue with MI subscription extended to 6.8 million out of 10.5 million total subscribers, while voice revenue remained resilient.
Total revenue increased by 4.6% y-o-y to RM1,653 million leading to estimated revenue market share of 27.7%* and EBITDA rose to RM747 million, following three consecutive quarters of fairly flat EBITDA.
At the same time, the network modernisation program and 3G roll-out have both delivered ahead of schedule, with 85% of the network sites swapped and optimised and population coverage for 3G expanded to 72%.
Quarter 2, 2013 results marked a positive milestone and solid foundation in heading towards better performance and earnings growth as DiGi completes its network modernisation in Quarter 3 and reaching more than 75% 3G population coverage by year end.
The focus would be on accelerating the MI contributions supported by additional subscriptions from new 3G coverage locations and better network quality on completion of network modernisation. The higher contributions from MI combined with continued efforts to improve efficiency will improve EBITDA and Ops Cash-Flow margins for the remaining quarters.
The margins pressure on domestic and IDD voice is likely to continue but the effects mitigated through right pricing and operational efficiency measurements.
DiGi aims to deliver a stronger y-o-y performance in the next two quarters compared to same period last year which were impacted by network issues.
Thus, the 2013 full year guidance maintains at:
• 5% - 7% revenue growth
• sustaining EBITDA & cash-flow margin at 2012 levels
DiGi will also be completing its network modernisation by Quarter 3, 2013 and expanding its 3G population coverage to 75% or more by the end of this year. The investment on capex will be managed within RM750 million or 11% against revenue.
DiGi delivered 4.6% higher revenue y-o-y driven by continued growth momentum on mobile internet (“MI”) revenue supported by stronger mobile internet adoption and increased number of smartphone users in the network. Service revenue grew by 3.8% y-o-y and 3.4% q-o-q whilst EBITDA margin for the quarter increased to 45%.
EXECUTIVE SUMMARY
Overall, Quarter 2, 2013 performance was aligned with plans in regaining momentum on service revenue and margins while anticipating stronger contribution in 2H2013 with completion of network modernisation and expanded 3G coverage.
The quarter recorded a strong q-o-q growth momentum with service revenue increased by 3.4%, EBITDA by 3.8% and PAT by 15.5%. This was driven by positive growth on MI revenue with MI subscription extended to 6.8 million out of 10.5 million total subscribers, while voice revenue remained resilient.
Total revenue increased by 4.6% y-o-y to RM1,653 million leading to estimated revenue market share of 27.7%* and EBITDA rose to RM747 million, following three consecutive quarters of fairly flat EBITDA.
At the same time, the network modernisation program and 3G roll-out have both delivered ahead of schedule, with 85% of the network sites swapped and optimised and population coverage for 3G expanded to 72%.
Quarter 2, 2013 results marked a positive milestone and solid foundation in heading towards better performance and earnings growth as DiGi completes its network modernisation in Quarter 3 and reaching more than 75% 3G population coverage by year end.
Continuing q-o-q growth momentum in 2H13
With 1H2013 results delivered, focus is now shifted to the remaining two quarters for the year to continue the positive q-o-q growth momentum on service revenue and earnings.The focus would be on accelerating the MI contributions supported by additional subscriptions from new 3G coverage locations and better network quality on completion of network modernisation. The higher contributions from MI combined with continued efforts to improve efficiency will improve EBITDA and Ops Cash-Flow margins for the remaining quarters.
The margins pressure on domestic and IDD voice is likely to continue but the effects mitigated through right pricing and operational efficiency measurements.
DiGi aims to deliver a stronger y-o-y performance in the next two quarters compared to same period last year which were impacted by network issues.
Thus, the 2013 full year guidance maintains at:
• 5% - 7% revenue growth
• sustaining EBITDA & cash-flow margin at 2012 levels
DiGi will also be completing its network modernisation by Quarter 3, 2013 and expanding its 3G population coverage to 75% or more by the end of this year. The investment on capex will be managed within RM750 million or 11% against revenue.
