DiGi Q3 profit up 7.8 percent, eyes more data boost

Malaysian telco DiGi has posted a 7.8 percent rise in its net profit at RM315 million for the third quarter,  boosted by growth from data revenue which it is hoping to grow further.

In earnings announced Tuesday, DiGi noted for the three months ended September earnings rose 4.1 percent to RM1.58 billion. This was boosted by a 3.4 percent increase in data revenue to RM460 million.

Henrik Clausen, CEO of DiGi, pointed out in the statement data revenue accounted for about 31 percent of its total service revenue for the first nine months of the year.

He added the company had invested between RM700 and RM750 million this year to upgrade its network to cater to the increased demand from data users and a growing shift from voice to data.

Over the past three months, the telco had prioritized its resources to improve its new network and expanding its 3G coverage, according to Clausen, who added this would remain a core focus.

The CEO added DiGi had also invested significantly in strengthening its retail presence "to enable better access to mobile Internet for more customers, and enhance the customer experience across our touch-points".

"All this will enable us to capture a bigger piece of the mobile Internet and broadband market in the long-term," Clausen said.

For 2013, DiGi is aiming to outgrow its industry peers in terms of revenue growth, according to its presentation. It expects to deliver growth of between 5 and 7 percent, above the industry average of 5 percent.