OSLO, Norway,and KUALA LUMPUR, Malaysia, Feb. 6, 2002 (PRIMEZONE) -- Telenor (Nasdaq:TELN):
DiGi.Com Bhd today announced a profit after taxation of RM158.9 million for the eight-month financial period ended December 31, 2001. This was a clear improvement over the RM152.1 million recorded in the preceding financial year ended April 30, 2001 which has been restated to reflect the retrospective adjustments arising from the changes in accounting policies. These changes were made to ensure consistency with the policies adopted by DiGi.Com Bhd's ultimate holding company, Telenor ASA. The increase in after tax profit was attributed to the recognition of a deferred tax asset of RM37.0 million, given the reasonable expectation of its realisation in the near future. Consequently, earnings per share improved to 21.2 sen for the eight-month financial period under review in comparison with 20.3 sen in the preceding year.
As the company has changed its financial year-end from April 30 to December 31 to be co-terminous with the financial year of its holding company, Telenor Asia Pte Ltd., the financial statements for the eight-month financial period ended December 31, 2001, were compared against the twelve month period of the preceding financial year from May 1, 2000 to April 30, 2001.
For the past eight months, DiGi has focused attention on enhancing its network quality and coverage. This customer-oriented effort recently paid off when the telco's network quality was rated the best in Malaysia by renowned international research house, Salomon Smith Barney, who conducted an in-depth study measuring the network parameters of local and regional operators ('Kicking the Tires - Not All Networks are Created Equal', pp. 42 - 47, November 9, 2001). Not one to rest on its laurels, DiGi will continue to focus on improving network coverage and quality, and is in fact right on track in the planned roll-out of its network. In this, measures have already been put in place to accommodate GPRS technology, as well as the much anticipated new-generation 3G technology when it is eventually implemented.
More notably, the past eight months have been a significant period in DiGi's corporate history, with Telenor's increased commitment in DiGi making it the first and only majority foreign-owned telco in Malaysia. There is no doubt of Telenor's crucial role in DiGi's sustained profitability, through the provision of world-class technical and operational expertise and skill transfer in terms of DiGi's creative and innovative product development. Of greater significance within the fiercely competitive local market is the fact that DiGi has been able to leverage on Telenor's technical expertise in gearing towards the introduction of GPRS and 3G.
Within the highly competitive cellular market also, DiGi creatively employed differential strategies as a means of capturing market share. One of these strategic measures was to embark on its new corporate brand campaign to heighten public perception of the DiGi brand and build greater credibility in the market. The campaign underscores the telco's commitment as an innovative, contemporary and world-class brand that offers lifestyle-centric, relevant and quality services tailored to satisfy the needs of its customers. In line with this broad-based approach, DiGi also introduced a series of promotions for its prepaid and postpaid mobile categories, as a means of creating opportunities to deliver on its brand promise.
According to DiGi's Chief Operating Officer, Mr. Tore Johnsen, "With mobile subscriber numbers in Malaysia expected to grow to about 8 million this year, there is huge potential for us to increase our market share. We are determined to achieve this, not only through our on-going emphasis on offering relevant and meaningful products and services, but also in our unwavering commitment to ensure that the highest industry standards are upheld in meeting our customers' increased expectations in the year ahead."
All these pro-active and customer-oriented efforts and initiatives have been the key to DiGi's continued profitability within the softening industry environment, as customers are drawn to the cost-saving convenience of DiGi's product and service offerings. Through heightened perception of the DiGi brand of service as world-class and contemporary, in line with increased public awareness of its consistent delivery in terms of product innovation, DiGi's future outlook continues to be encouraging.
About DiGi
DiGi, with its core philosophy of Connecting You to Your World, is a telco that listens to its customers and tailors its services to suit their lifestyles - services that are meaningful and relevant, enhancing the way they live, work and play. DiGi is the first telco to launch the prepaid concept for mobile services in Malaysia and till today, DiGi Prepaid Plus remains the market leader. DiGi is also the first telco in Malaysia to launch a revolutionary and cost-saving postpaid mobile service to suit the different usage and lifestyle patterns of the customers of today in line with full deregulation.
With its unwavering focus on providing customer-delight, DiGi offers the most comprehensive and innovative range of products and services to take its customers beyond mere satisfaction. This is reflected in its many industry-leading offerings, all of which are delivered with an exceptional standard of service that best exemplifies DiGi's professionalism and commitment.