Showing posts with label Time dotcom. Show all posts
Showing posts with label Time dotcom. Show all posts

Friday 24 February 2012

Time dotCom’s 2011 pre-tax profit up 34pc


By Lee Wei Lian February 23, 2012
KUALA LUMPUR, Feb 23 — Time dotCom Berhad reported today that net pre-tax profit rose 34 per cent last year to RM119 million thanks to higher margins.

Time CEO Afzal Abdul Rahim said that the goal for 2011 was to squeeze as much profitability as possible.

“We increased our profits from operations by growing recurring revenue within our core market segments and improving margins in data products,” he said in a media statement.

He also said that the company had focused on expanding its footprint and now had more than 100,000 premises wired up with 100 per cent fibre network services.

The group said that for 2012, it will focus on further monetising its network and build on expanding its coverage in key market segments.

It will also concentrate on offering wholesale services and data products to further drive revenue.

http://www.themalaysianinsider.com/business/article/times-2011-pre-tax-profit-up-34pc/

Tuesday 16 November 2010

Proposals by Time dotcom signals important milestone to turn around GLCs

Tuesday November 16, 2010


Proposals by Time dotcom signals important milestone to turn around GLCs
Raison D'etre - Risen Jayaseelan


On the face of it, the deal does raise eyebrows. First, it a very big related-party transaction (RPT) and second, why is an individual being given control over an important GLC?
But a closer look indicates that there is not much to fret about. First, the RPT is fully disclosed and all interested parties in the deal, which include Afzal and Khazanah Nasional Bhd, aren’t going to vote on the deal, leaving the decision on whether to accept or reject the proposals entirely in the hands of the minority shareholders.
Second, is the question of whether the assets are being injected at a fair price.
Afzal said UBS Securities Malaysia was particularly picked by TdC’s board to advise on the deal as UBS has had a lot of experience in valuing assets such as data centres and submarine cables.
It is also understood that the replacement cost of the submarine cables is much higher than what TdC is paying for. (To recap, one of the companies TdC is buying owns a 10% interest in the trans-Pacific Unity North Cable system, which is a 9,620km Japan-US cable built together with Google, Bharti, KDDI, SingTel and Pacnet.)
But perhaps, most significant aspect of the deal is this: Afzal did not parachute into this deal from nowhere. He has been given the reins to run TdC since October 2008 and has been doing a pretty decent job at it. TdC used to be known as a company whose revenue and profits were erratic and interspersed with asset disposals and impairment exercises that left investors with little visibility of the future earnings of the company.
But since 2009, TdC has been consistently EBITDA (earnings before interest, tax, depreciation and amortisation) positive, has had strong operations cashflows and has had five consecutive quarters of revenue and earnings growth. TdC’s EBITDA and operating profit margin have also doubled in the first half of FY2010. Afzal says 2009 was a year of ‘detox and cleansing’, whereby the cash was conserved, processes re-engineered and the quality of their fibre optic networks – the core of their business – were improved.
A closer look at the deal also reveals that Afzal & Co are being paid for their assets largely in shares in TdC. The cash that TdC is paying out goes mainly to other shareholders of the assets, namely three private equity funds, which had pumped in the initial capital needed to part finance the construction of the submarine cable. This clearly indicates that Afzal and his team are in for the long run at TdC.
Minority shareholders, therefore, should consider these facts when it’s time to vote on this deal.
If this model works out – if Afzal and team do bring value to TdC – then it does set a good precedent for Khazanah and other government agencies on how to deal with valuable assets in their hands which are not reaching their full potential.
To be sure, it does seem that this is the model that Khazanah is also trying to follow for POS Malaysia Bhd. Alas, in that case, it does seem to be taking longer than expected. While bids have been submitted by various parties on their plans to take POS to the next level, little has been heard of the deal since. It is rumoured that one stumbling block remains to be the unwillingness of the Government to give up its powerful golden share. Hopefully, that problem will be sorted out over time.
·Deputy news editor Risen Jayaseelan reckons that the TdC example is a big improvement from the past where assets and licenses were dished out to certain connected individuals who didn’t increase the value of those assets or worse, flipped them to other parties at a profit.

Time dotCom to cancel 90c from each share, capital repayment RM50.61m

Time dotCom to cancel 90c from each share, capital repayment RM50.61m
Written by Joseph Chin
Monday, 15 November 2010 17:13


KUALA LUMPUR: TIME DOTCOM BHD [] is undertaking a corporate exercise which involved a share capital reduction, capital repayment and the acquisition of four companies as it seeks to expand into the regional telecommunications industry,

Time dotCom said on Monday, Nov 15 it would undertake a share capital reduction of its paid-up of RM2.53 billion, comprising of 2.53 billion shares of RM1 each by cancelling 90 sen of the par value.

It also proposed a share consolidation of the 2.53 billion 10 sen shares and consolidate them into 506.15 million shares, on the basis of five shares of 10 sen each to one share of 50 sen each in Time dotCom.

It also entered into two memoranda of agreements with the shareholders of Megawisra Sdn Bhd and Global Transit Ltd (Labuan) to acquire four companies for a total of RM286.5 million via the issuance of new shares and RM38.4 million cash.

The four companies are Global Transit Communications Sdn Bhd for RM106 million, Global Transit Ltd for RM105 million, Global Transit (HK) Ltd and Global Transit Singapore Pte Ltd for RM1 each and AIMS Group for RM128 million in cash and shares.

It also proposed a capital repayment of RM50.61 million or two sen per TdC share.

http://www.theedgemalaysia.com/business-news/177153-flash-time-dotcom-to-cancel-90c-from-each-share-capital-repayment-rm5061m.html


Related:
Time dotCom Analyst presentation slides and research paper