TM's Profit Soars To RM2.5 Billion

MRaef — Wed, 27 Feb 2008 02:41:14 +0800

Source: http://www.bernama.com.my/bernama/v3/news_...s.php?id=316696

QUOTE

KUALA LUMPUR, Feb 26 (Bernama) -- Telekom Malaysia Bhd's net profit went up 23 percent to RM2.548 billion for the financial year ended Dec 31, 2007 from RM2.069 billion in 2006.

Announcing this, its group chief executive officer Datuk Seri Abdul Wahid Omar attributed the good results to better financial performance from its mobile business, Celcom (Malaysia) Bhd.

"Despite intense competition, both domestically and on the international front, the group's mobile business as a whole delivered robust performance contributing 55.5 percent of group revenue.

"Celcom in particular delivered a double digit growth of 13.1 percent with a revenue of RM5.157 billion. Our regional mobile customers also registered a robust growth of 39.6 percent to 39.8 million customers from 28.5 million last year (2006)," he told reporters here today.

He cited other higher operating incomes, gain from the listing exercise of Spice Communications Ltd, higher share of results in Spice and lower taxation charge also as reasons for the good results.

Meanwhile, the group's total revenue grew by 8.8 percent to RM17.843 billion against RM16.399 billion recorded in 2006, largely driven by the mobile, leased services and Internet and multimedia segments of its businesses.

Wahid said the group also registered better earnings before interest, tax, depreciation and amortisation (EBITDA) of RM7.627 billion, an improvement from RM7.492 billion registered in 2006.

The board is proposing a final gross dividend of 22 sen per share less tax of 26 percent, amounting to RM560 million net.

Total net dividend payout for financial year 2007 would amount to RM1.213 billion, which represents a payout ratio of 47.6 percent.

Updating the group's demerger, Wahid said TM is on track to complete the demerger exercise by the second quarter this year which will see the creation of two separate telecommunication entities namely RegionCo (TM International Bhd) as the regional mobile entity and FixedCo ™ as the domestic broadband entity.

Wahid said RegionCo, which comprised TM International and Celcom are expected to continue to register further revenue growth in 2008.

Besides that, the entity would continue to strengthen its market share and improve its financial position in Sri Lanka, Bangladesh, Indonesia and Cambodia and try to expand its presence in the South East Asia regions by selectively looking for new investment opportunities.

Barring any unforeseen circumstances, the board expects the group's performance for the financial year ending Dec 31, 2008 to remain favourable.

-- BERNAMA

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TM's Profit Soars To RM2.5 Billion