DiGi’s business trust plan still intact

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KUALA LUMPUR: DiGi.Com Bhd (DiGi.Com) assured investors yesterday that its plan to set up a business trust, first mooted in April 2013, is “still intact” and that it has been engaging with the relevant stakeholders and regulators to push the plan through.

“There is no change in plans at all. We felt that everyone is supportive of it. We just need time to clarify the questions — not just from our side but also from the stakeholders. There is a lot of new material here and it is just a tedious process,” said DiGi.Com’s outgoing chief executive officer (CEO) Lars-Ake Norling at a media briefing.

“As you know, it (the business trust) is a new form of business in Malaysia and it takes time working with the stakeholders. We need to ensure that business is as usual. We have made progress but we cannot comment specifically on it,” said Norling, who declined to say more.

On its existing business, DiGi.Com said it will continue to focus on becoming the best mobile Internet provider for the mass market to drive the company’s growth as demand for mobile Internet is “very strong”.

“Malaysians love to be on the Internet and spend a lot of time on it, averaging at about three hours a day on social media. That is a good fundamental and we need to transfer that into monetisation and growth,” said Norling.

DiGi.Com (fundamental: 1.55; valuation: 2.1), in its fourth quarter of financial year 2014 ended Dec 31 (FY14), saw its Internet revenue surge 37.9% year-on-year and 4.3% quarter-on-quarter (q-o-q), which compensated for its weaker traditional voice and messaging revenue.

Further, Internet penetration for both its prepaid and postpaid also climbed quarter-on-quarter to 54% and 72% respectively, thanks to positive uptakes of its affordable smartphones and Internet packages. 

“We want to ensure that we have the right level of support to bring the customers on to the Internet. We are ensuring that we have the right plans, right services, right device bundles out there with a value proposition for the Internet,” said DiGi.Com CEO-designate Albern Murty.

 

This article first appeared in The Edge Financial Daily, on March 5, 2015.