TIME dotCom Berhad, a data and telecommunications solutions provider, today reported a 61% jump in its operating profits for the financial year ended 31 December 2013 to RM118.0 million from a year earlier, driven by robust local and global data demand.
The Group’s core pre-tax profits for the same period expanded 58% to RM116.2 million on the back of increased revenue and improved profit margins. Revenue rose 31% to RM548.3 million on higher data sales and a full 12-month contribution from the Group’s data centre and global bandwidth businesses.
“This is a phenomenal set of financial results that surpassed even our own expectations,” said TIME’s Chief Executive Officer Afzal Abdul Rahim. “The business is only just starting to benefit from scale, and I frankly can’t wait to see what the next couple of years has in store for us.”
Revenue in TIME’s Data segment advanced 34% to RM411.6 million for the year, helped by demand from mobile operators for their mobile node fiberisation projects to cater to consumers’ needs for faster mobile speeds.
For the full year, revenue from TIME’s Wholesale, Enterprise and SME & Consumer segments climbed 43%, 21% and 16% respectively.
For the fourth quarter(Q4) of 2013, operating profits leaped 48% to RM28.7 million from a year earlier. Core pre-tax profits swelled 53% to RM28.3 million. Revenue increased by 23% to RM149.2 million, while EBITDA margin in the quarter also improved by three percentage points to 33%.
“We will continue to grow and do what we have always done best; deliver quality uninterrupted network experiences, improve our products and solutions and constantly strengthen our fibre network and coverage footprint,” said Afzal.
He added that Asia-wide demand for higher-speed bandwidth services and fibre connectivity, from both mobile operators and individual users, will remain unabated for the medium to long-term.
TIME said that it will continue to modernise its network, while mobile node fiberisation projects for LTE network rollout by mobile operators are expected to carry on throughout the year, providing new revenue streams for the company.
It will also continue to unlock the potential of its data centre, submarine cable and global bandwidth businesses, both locally and within ASEAN.
TIME announced its first-ever dividend policy that pays out up to 25% of its normalised profit after tax.
“The introduction of a dividend policy is on the back of 5 straight years of steadily growing profits, and takes into account the Group’s capital requirements,” said TIME’s Chairman Abdul Kadir Md Kassim.
Abdul Kadir added that the first dividend will be paid out in 2015 based on audited financial results for the financial year ending 31 December 2014.