Thursday, 9 May 2013

DiGi.Com still exploring business trust (Update)

KUALA LUMPUR: DiGi.Com Bhd is still looking into the possibility of setting up of a business trust. Its chief executive officer Henrik Clausen said on Thursday the telco was still exploring the possibility.

DiGi was also looking at a 5% to 7% revenue growth this year, he told reporters after the AGM.

Meanwhile, Bernama reports is allocating RM750 million for capital expenditure this year, out of which 80% is for the construction of long-term evolution or 4G and 3G networks.

"DiGi will further beef up the investment this year to spur mobile Internet business and we also expect to launch the 4G network by the end of June," Clausen said.

He said although Maxis and Celcom had already launched their 4G services, DiGi viewed this as a 10-year game.

"We are not worry about the kick-off time for 4G services as we think end of the second quarter is ample time for us to launch the service, but most importantly is to do it in the right way," he added.

Last year, the company had swapped more than 3,200 sites or about 60 per cent of its total network to the 4G spectrum and expanded its 3G network to more than 67 per cent of populated areas in Malaysia, from 54 per cent a year ago.

On site sharing and fibre build initiative with Celcom Axiata, he said the project saw good progress with the near completion of a combined 1,000 km of owned and joint fibre infrastructure in the north and south of Peninsular Malaysia.

With a total of 10.5 million customers currently, DiGi is among the top three players in the telecommunications industry with a 28%t market share in Malaysia.

To recap, in the first quarter ended March 31, its earnings rose 2.5% to RM328.64mil from RM320.63mil a year ago. Revenue rose 4.9% to RM1.64bil from RM1.57bil.

DiGi's higher revenue was mainly driven by mobile Internet revenue which grew 55% on-year, from a larger base of 5.8 million mobile Internet customers, including 3.0 million smartphone users.

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