DiGi Q4 earnings down 37% to RM245m on-yr on higher taxes (Update)

KUALA LUMPUR: DiGi.Com Bhd's earnings fell 37% to RM245.52mil in the fourth quarter ended Dec 31, 2012 from RM394.22mil a year ago due to a higher tax rate. It proposed a dividend of 2.5 sen a share or 25%.

It announced on Wednesday Q412's effective tax rate of 31.7% was higher than the statutory tax rate of 25.0% due mainly to the reversal of prior quarters' broadband network-related tax incentives during the current quarter under review. It said that Q412's taxation surged to RM114.20mil.

DiGi said revenue rose 5.4% to RM1.629bil from RM1.545bil while earnings per share fell to 3.16 sen to 5.07.

Its earnings for the financial year ended Dec 31, 2012 fell 3.9% to RM1.205bil from RM1.254bil in FY11.

Its revenue increased by 6.6% to RM6.361bil from RM5.964bil a year ago.

For the year under review, mobile internet customers increased from 5.2 million to 5.7 million, with mobile data revenues now accounting for 32.7% of the group's overall service revenues.

During the year, DiGi increased its capital expenditure to RM700mil in line with the progress made on the company's business transformation programme, which included modernisation of its network, information system and information technology (IS/IT) infrastructure, and distribution channels.

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Note:

6947 DIGI DIGI.COM BHD

Fourth Interim Tax Exempt (Single-tier) Dividend 2.5 Sen

Entitlement Details: Fourth interim tax exempt (single-tier) dividend of 2.5 sen per ordinary share of 1 sen each for the financial year ended 31 December 2012. Entitlement Type: Interim Dividend Entitlement Date and Time: 22/02/2013 05:00 PM Year Ending/Period Ending/Ended Date: 31/12/2012 EX Date: 20/02/2013 To SCANS Date: Payment Date: 08/03/2013

StarBiz presents five stock picks

With the sudden market selldown, some counters have been beaten down to attractive levels. StarBiz presents five stock picks, compiled by YVONNE TAN.
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DIGI.COM BHD

THE best reason to look at this stock, probably, is that technically, it is in oversold territory. The stock has lost 4.47% since Monday.

Its outlook for this year includes expectations that revenue would grow by 5% to 7%, while margins for earnings before interest, taxes, depreciation and amortisation are expected to remain stable.

Telco counters are also known for their generous dividend yields.

Based on its third-quarter numbers, DiGi's dividend yield is running at 4.5%, or 23.8 sen net per share. Its growth story remains intact, according to analysts.

As at the third quarter of 2012, DiGi's revenue market share expanded to 28%, up from 27.5% from end- 2011, largely driven by its above peer average net adds over the past two years, which was also accompanied

by a fairly stable, if not higher, average revenue per user or ARPU, said Affin Research.

It believes that its month-onmonth growth momentum will persist as it consolidates its market share in the youth and Malay ethnic group segments, two key growth areas.

With its revenue and growth trajectory intact, the research house is forecasting core dividend per share (DPS) to improve in the current financial year (FY13).

Although its FY13 DPS assumption is based on a 100% dividend payout, it suspects there is potential for upside to its DPS forecast of 22.6 sen for FY13.

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DiGi eyes 30pc growth in online store shopping

DIGI.COM Bhd, the third largest mobile operator in the country, aims to grow its online business by 30 per cent this year, mainly driven by the increasing trend of online shopping among consumers.

Its online store, DiGi Store Online, allows customers to buy new mobile devices for their existing plans, sign up to a new plan and reload prepaid airtime, among others.

The portal also allows non-DiGi customers to buy devices by signing up to a plan - via a new DiGi number or porting from their existing number.

Products purchased online will be delivered to buyers within three working days and can be paid for via installment plans.

Read more: DiGi eyes 30pc growth in online store shopping http://www.btimes.com.my/Current_News/BTIMES/articles/digion/Article/#ixzz2IAtEZoqQ

RHB Research maintains Overweight on telco sector

KUALA LUMPUR: RHB Research Institute is maintaining its Overweight outlook on the telecommunications sector with Time dotCom as its top pick.

It said on Friday while valuations are not cheap, it expects monetary policy to remain accommodative and supportive of the country's economic growth amid ample liquidity.

“Therefore, investors may continue to seek out telecom stocks offering generous dividend yields,” it said.

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“Among the telcos, only DiGi has offered guidance for 2013 and management expects revenue to grow by 5%-7%. Apart from Time dotCom, we believe DiGi offers the strongest revenue and earnings growth prospects in 2013 based on our forecast of 8% and 9% respectively,” said RHB Research.

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More growth seen in DiGi this year

Affin Research
Buy (maintained)
Target price: RM6.04

ALTHOUGH DiGi's stock price has appreciated 38.6% year-to-date, DiGi remains a key pick for the telco sector moving into 2013.

Our buy rating is premised on DiGi's continued growth story and strong capital management initiatives.

Both factors, in our view, are likely to drive stock price towards our discounted cash flow target price of RM6.04 (based on a weighted-average cost of capital of 6.3% and growth of 1%).

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Norway's Telenor awaiting details of liberalisation before raising stake in DiGi

PETALING JAYA: Norwegian Telenor ASA is not opposed to further increasing its stake in DiGi.Com Bhd but will decide on the exact percentage once the Malaysian Government issues more details on the plan to further liberalise the local telecoms sector to allow foreign equity ownership to go up to 70%.

The current ceiling for foreign equity ownership is 49% and that is how much Telenor has in DiGi. read more...

My TP is getting higher!!!!

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.....

Time to Buy Telco Stocks

Source: Bernama

Digi taps into M'sians for mobile instant messaging

KUALA LUMPUR (Nov 9, 2012): DiGi Telecommunications Sdn Bhd (DiGi) is reaching out to more Malaysians who cannot live without mobile instant messaging through an exclusive offer for DG Prepaid Smart Plan subscribers effective Monday.
"From Monday, the promotion offers subscribers an extended reload validity period and unlimited free data charges when using the WhatsApp Messenger, said DiGi in a statement today.
The mobile phone operator's collaboration with WhatsApp Inc has also given DiGi a competitive advantage in enabling customers to better enjoy the most popular mobile messaging service.
Its Head of Products (Consumer and Business) Ting Shiew Han said: "Our DG Prepaid Smart Plan is the first prepaid plan in Malaysia tailored for smartphone users."
He said with every six out of 10 phones sold in Malaysia being a smartphone, DiGi was committed to deliver even better value and more convenience to customers by giving a longer validity period and more value when they sign up for the package and reload.

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