KUALA LUMPUR (May 28): TIME dotCom Bhd's net profit rose 55.17% in the first quarter (1Q) ended March 31, 2020 to RM97.96 million, from RM63.13 million last year, on the back of a higher revenue.

Quarterly revenue increased 11.96% to RM293.45 million from RM262.54 million, the telco said in an exchange filing.

Earnings per share rose to 16.73 sen from 10.82 sen previously.

TIME said the higher earnings were also due to a net forex gain of RM27.1 million, compared with a RM10.9 million net forex loss in the year-ago 1Q.

In addition, the group also had a lower interest exposure, as well as lower depreciation and amortisation charges against its property, plant and equipment and right-of-use assets — amounting to RM36.6 million, compared with RM38.4 million last year.

TIME also registered RM2.6 million in dividend income during the quarter, from none previously.

On top of that, it saw a higher share of profit from associates totalling RM5.3 million, from RM3.7 million previously.

However, the profit was offset by a higher allowance for doubtful debts of RM2.3 million, from RM0.6 million last year, higher staff-related costs and higher donations.

As for revenue, the group's voice segment saw its revenue grow 2.5% to RM17.55 million, from RM17.12 million last year.

Meanwhile, the data segment's revenue rose 13.3% to RM239.45 million from RM211.39 million. Data centre revenue increased 8.2% to RM36.41 million from RM33.65 million.

TIME added that all core customer groups registered solid revenue growth, with the largest growth contributions coming from its retail and wholesale customers.

In a separate statement, TIME CEO Afzal Abdul Rahim said the rest of 2020 would be challenging not just for the industry but for the global economy at large.

"Thankfully, we enter this period with a robust operational framework and a solid balance sheet.

"This should help us weather through the rest of the year as we adapt to the challenges posed by Covid-19," he said.

TIME said it is too early to determine the impact of Covid-19 and the Movement Control Order on the group.

It added that it will continue to work with its Thai, Vietnamese and Cambodian partners to tap into increasing demand for cross-border connectivity across Asean.

"The group will also assess opportunities to further establish itself as a key regional data centre player and operator with the intention to unlock the long-term potential of its data centre business," it said.

Shares in TIME were 1.25% or 14 sen higher at RM11.36 at midday, valuing the group at RM6.85 billion.