TIME posts higher revenue and operating profit in Q2 2016
By Digital News Asia August 31, 2016
- Revenue up 7.1% year-on-year to RM175.4mil
- Operating profit up 16.4% YoY to RM42.4mil
TIME dotCom Bhd said it recorded RM175.4 million in revenue for the second quarter ended June 30 2016 (Q2 2016), 7.1% higher than in Q2 2015. [RM1 = US$0.25]
In a statement, the company said it posted higher revenue across all segments despite lower one-off contributions from Indefeasible Rights of Use (IRU) sales and non-recurring contracts (Q2 2016: RM2.2 million, Q2 2015: RM11 million).
An IRU is a contract between a communications system owner and its customer that cannot be annulled, typically lasting decades.
Excluding these, data grew 14.3% year-on-year (YoY) on the back of stronger recurring revenues from its enterprise and retail segments, while data centre and voice revenues increased 12.1% and 10.3% respectively, TIME said.
Group operating profit rose 16.4% to RM42.4 million compared with RM36.4 million in Q2 2015.
For the first half of the year ended June 30 (1H 2016), TIME had RM350.6 million in revenue, a 4.5% increase from the same period a year ago.
TIME revamped its TIME Fibre Home Broadband service during the period and saw Q2 2016 retail revenue rise 24.6% on a quarter-on-quarter basis, making up 10.4% of overall revenue.
“In March, we upped the ante in the Malaysian home broadband scene when we launched speeds of up to 500Mbps,” said its chief executive officer Afzal Abdul Rahim.
“Take-up has improved significantly, which goes to show that Malaysians are ready for ultrafast broadband,” he added.
TIME is also part of the Faster trans-Pacific subsea cable consortium which includes Google Inc, that became fully operational on June 30, through which TIME realised a gain of RM4.8 million from pre-sale activities, it said.
It declared a special interim tax-exempt (single-tier) dividend of 13.3 sen per ordinary share for the financial year ending Dec 31 2016, which will be paid out on Sept 30 2016.
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