Thursday 28 Mar 2024
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KUALA LUMPUR (Aug 28): Time Dotcom Bhd saw its net profit fall 82% to RM35.88 million or 6.2 sen per share in the second quarter ended June 30, 2017 (2QFY17) from RM199.8 million or 34.71 sen per share a year ago, due to the inclusion of several extraordinary gains in 2QFY16 which included the gain on disposal of its shares in Digi.Com Bhd and Campana Group Pte Ltd, as well as a gain from its sale of a portion of the FASTER submarine cable system.

In a filing with Bursa Malaysia, the group said excluding the extraordinary items, the group would have recorded a 4% growth in pre-tax profit to RM37.88 million in 2QFY17, compared with its adjusted pre-tax profit of RM36.5 million in the corresponding quarter.

Quarterly revenue grew 17% to RM205.32 million from RM175.43 million in 2QFY16, supported by revenues from data and data centre product segments and one-off revenues from indefeasible rights of use (IRU) sales.

For the first half of the financial year (1HFY17), net profit declined 63% to RM88.93 million from RM237.39 million, even though revenue jumped 21% to RM423.74 million from RM350.63 million.

Going forward, Time Dotcom expects the telecommunications industry to remain competitive and challenging in 2HFY17, as its traditional revenue streams continue to be threatened.

The group said it will leverage on existing strengths and continue to grow market share by providing a fast, reliable and quality network experience.

“The group will also look to strengthen its domestic fibre network and intensify efforts to extend its coverage footprint throughout the country, whilst at the same time enhancing operational and cost efficiencies within the group,” it said.

Meanwhile, the group is looking forward to complete its proposed investment in Thailand’s Symphony Communication Public Co Ltd (SYMC) as part of its regional expansion strategy, which is expected to be completed by end-2017.

Besides that, it said the Asia-Africa-Europe 1 cable system is expected to open new markets and opportunities for the group upon completion.

“Whilst the group’s international submarine cable initiatives may initially be capital intensive and may result in some profit margin compression to the group in the early periods upon completion, they are, however, necessary to ensure continued revenue growth in the future and is expected to benefit the group strategically in the longer term,” it said.

Time Dotcom gained six sen at RM9.66, giving it a market capitalisation of RM5.62 billion.

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