DiGi to expand network further

DIGI.COM Bhd, which has invested RM700mil to RM750mil on its telecommunication network this year, will further beef up its investment next year partly to drive its marketing ambitions to spur its mobile Internet business.
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“Today, we have 3G sites covering about 60% of the population, and DiGi hopes to push it to about 70% in the first half of next year. For data, the coverage is about 95% of the population, including both 2G and 3G sites,'' he tells StarBizWeek in a recent interview.

For prepaid customers, he says, it plans to continue delivering “Internet for All” by providing the right plans for the different needs in the market, and build with Internet, among others. For postpaid, DiGi will focus on mobile Internet services, smartphones and roaming offerings.

Besides providing data access, Murty says the company will roll out packages with competitive pricing to various segments of the market that will involve both “above-the-line” and “below-the-line” campaigns regardless of the technology being deployed.

Among the successful mobile Internet campaigns rolled out by the company this year were the postpaid plan that offered unlimited Internet roaming at a flat rate when roaming in certain countries and the lowest tablet plans in the market at RM15 a month with Internet quota of 500MB for postpaid customers.

Its data revenue grew by 3.4% in the third quarter of this year compared with the second quarter (of this year) driven by strong mobile Internet usage, aided by higher take-up of its DG Smart Plans and smartphone bundles.

For prepaid users, one of the successful ones is the DiGi Easy Prepaid's Refreshed its Buddyz proposition that includes 24-hour free calls, SMS to three Buddyz and free Facebook access. DiGi is the only mobile operator to offer free FB access to prepaid and postpaid customers via Opera Mini browser.

According to Murty, plans are underway to expand the number of DiGi stores nationwide next year as part of company's strategy to meet the greater demand and needs of customers.

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DiGi expects a 25% rise in smartphone customers

Kuala Lumpur (Dec 13, 2012): Mobile communications provider DiGi.Com Bhd expects to see a 25% rise in the number of its smartphone customers with the much anticipated iPhone 5 which will hit markets nationwide tomorrow.

Its head of internet and services product marketing, Praveen Rajan, said the latest iPhone is expected to strengthen the company's position as a market leader in the postpaid and prepaid segment.

Speaking at a media briefing here today, Rajan said DiGi's aim was to bring the internet to everyone and its main focus now was about making smartphones easier and more affordable for customers.
"The iPhone 5 happens to be one of the many devices we carry in the market, and it is also about bringing convenience to customers," he added. – Bernama

My TP for mum and bb.....haha

 

RHB Research: DiGi fair value at RM5.40

KUALA LUMPUR: RHB Research Institute is maintaining its fair value for DiGi.Com at RM5.40 as valuations are still not cheap at this juncture.

It said on Tuesday DiGi has largely sustained its revenue growth momentum while margins do not appear overly affected despite tougher competition.

"Management noted handset subsidies have become more aggressive in the last six months. While a risk to DiGi's EBITDA margins, we believe the risk should be controlled as management prefers to take a more rational and selective approach when subsidising handsets," it said.

RHB Research said despite lost revenue opportunities in 3Q due to prolonged post-swap optimisation, management maintained 2012 guidance of mid-to-high single digit revenue growth and stable EBITDA margins.

"There was some churn in postpaid due to the hiccup, and management will focus more on retention activities apart from acquiring new subscribers," it said.

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My TP for mum and bb.....

MAS to add RM1b in profits in 2 years

Posted on 30 November 2012 - 05:37am

Presenna Nambiar
sunbiz@thesundaily.com
 

KUALA LUMPUR (Nov 30, 2012): Malaysia Airlines (MAS) aims to generate an additional RM1 billion in profits in two years, by re-negotiating its engineering supply and catering contracts, having a more fuel-efficient fleet, higher aircraft utilisation and turnaround time, said its CEO Ahmad Jauhari Yahya.
This would be met with just a 2 sen margin between revenue and costs. Its target is to bring revenue up to 22 sen, and costs down to 20 sen respectively.
MAS' revenue per available seat kilometre (RASK), a way airlines break down the measurement of revenue, currently stands at 20 sen, while its cost per available seat kilometer (CASK) -- how it breaks down costs -- is at 24.9 sen.
In comparison, a highly profitable airline like Singapore Airlines has a RASK of 27 sen.
"It sounds simple enough but a lot of work needs to be done," he told reporters after a luncheon with local fund managers organised by Maybank Investment Bank here yesterday.
Ahmad Jauhari insists that this time around changes made are structural changes, which will lead to sustainable operations of the national airline in the future.
Its revenue management team, for example, which now has a new head under Ahmad Jauhari's management, has become more sensitive to changes of ticket prices in the market. It is now mandated to react to market fares within six hours.
MAS is also in the midst of re-negotiating its large engineering supply and catering contracts, which make up RM1 billion and RM200 million costs per year, respectively.
 

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