DiGi.Com Bhd is expected to reap further saving in operating expenses in the second half of financial year 2010, said OSK Research Sdn Bhd.

In its research note, OSK said DiGi was on track to meet the target of RM100 to RM120 million in saving for financial year 2010 as over 50 per cent of the targeted saving was achieved in the first half of financial year 2010.

'This will help buffer the downside on earnings before interest, tax, depreciation and amortisation margins from higher subsidies on smartphones, including the recently-launched iPhone 4 (IP4),' it said.

DiGi lowered the subsidy on the iPhone plans with the IP4 commanding a flat RM200 subsidy/handset across all plans.

The research house said there was upside to DiGi's margins over the longer term from the proposed collaboration with Celcom Bhd to share infrastructure.

DiGi in expected to announce its third quarter financial year 2010 results on Oct 26. OSK has maintained its 'neutral' call based on the target price of RM24.40. -- Bernama