TIME dotCom ON ROAD TO RECOVERY

Q109 Losses Down By 61.7%, Revenue Up 12.1%

SHAH ALAM, June 16 – TIME dotCom Berhad (TdC) financial results for the first quarter 2009 (Q109) shows that the telecommunications service provider is on the road to recovery as losses were narrowed and revenue improved.

TdC’s revenue for Q109 increase by 12.1% to RM74 million compared to RM66 million in the corresponding quarter last year (Q108). The company had also reduced its losses by some 61.7% or RM34.7 million in Q109 versus RM56 million in Q108.

According to Afzal Abdul Rahim, Chief Executive Officer of TdC, the higher revenue was attributed to the stronger data revenue offset by the reduction in voice revenue. The reduction in losses on the other hand was mainly due to lower depreciation and finance charges, offset by the loss on the disposal of the company’s shares in DiGi Berhad.

He went on to say that the challenge would be to sustain and even improved the company’s financials amidst expected stagnation in demand due to the challenging economic condition as well as increased competition from other industry players.

“While our financial result for the first quarter is positive and a morale booster to start the year, the turnaround of TdC is far from complete. We will continue to undertake corporate renewal exercises spanning operations, culture and training -- a process which may take 24 months,” said Afzal.

He added that the telecommunications service provider will continue to focus on its more lucrative operations with greater growth potential. This would be data service offering in the wholesale, enterprise and corporate market segments, which was the company’s biggest earnings contributor for Q109.

“The focus on data service offerings will allow us to optimize our existing infrastructure and take advantage of the many opportunities currently available in the market place.”

On its target audience, Afzal said that the company will focus on the small and medium enterprise market and push its products and services to corporations as well as the government.

TdC, which has been going through several cost cutting measures implemented since late last year, has seen its operating expenditure shrunk 27.1% from RM107.1 million in Q108 to RM78.1 million in Q109.

Some of the cost saving efforts includes reassessment of its capital expenditure, freeze of new hire and advertising and reviewing of contracts with several vendors in the area of networks and equipment maintenance.

The company according to Afzal is also looking at other cost cutting measures such as exploring the use of open source software for the company’s IT needs.

“We are committed to reducing our operating costs and strengthening the company from the core as improvement in our internal operations and a stronger TdC would see us attaining market share and return the company to profitability.

“Though to realise this, we have to re-build the organisation, tap the potential in the market place for our products and services and restore engineering pedigree – not an easy task, but achievable,” said Afzal.

TdC held its 12th Annual General Meeting today, chaired by its Chairman Dato’ Wan Muhamad Wan Ibrahim.