Operating revenue climbed to RM2,232 million for the first quarter, representing a growth of 9.7 per cent over the same period last year. The increase in revenue is mainly attributed to growth in the cellular segment. Voice telephony continues to be the main source of revenue, contributing 69 per cent of the operating revenue. Cellular contribution increased to 16 per cent compared 10 per cent in the previous first quarter while data revenue including leased lines comprised 8 per cent of the revenue.
Profit before tax increased by 21.8 per cent. Profit before tax for the quarter was at RM448 million compared to RM368 million for the corresponding period in 2000.
Earnings per share was 9.0 sen, an increase of 36 per cent as compared to 6.6 sen per share in the first quarter of 2000.
Telekom Malaysia’s combined mobile customer base has surpassed the 1 million mark. As of March 2001, our cellular customer base stood at 1.07 million. We target a customer base of around 1.5 million by end of 2001. TM Touch’s postpaid customers grew at an average of 48 thousand customer per month in 2001. This steady growth is attributed to the improvement in network quality and coverage. TMTouch will be spending RM900 million to further improve its network coverage and quality.
Contribution from our overseas companies has improved to that of the previous period. Profit contribution from overseas investments amounted to RM21.3 million compared to a loss of RM47.0 million for the corresponding period in 2000.
Internet services continue to lead with an accelerating monthly growth for the first quarter of 2001, bringing the customer base to 939,000. To date we have registered more than 1,000,000 customers. A strong brand, coupled with aggressive marketing and promotion have firmly established TMnet as a major ISP in the region. Telekom Malaysia currently commands about 60 per cent of the Internet access business in Malaysia. In line with customer demands, the Company recently introduced TMnet Streamyx, its high-speed broadband Internet access service. This service which utilises xDSL technologies including ADSL, SDSL and G-lite, allows speeds of up to 2Mgbt. This service will not only facilitate Internet access but also online interactivity and e-commerce.
In building a Commerce Application Service Provider (CASP) market which aspires to increase content, develop e-commerce applications and provide more transaction services through Telekom Malaysia’s broadband and intelligent network, a new and exciting portal called BLUEHYPPO was also launched to position Telekom Malaysia with a portal window to provide on-line information and services.
Telekom Malaysia currently has the most extensive fibre optics network in the country totaling 245,000 kilometres, running from north to south in the Peninsula and via submarine cable to Sabah and Sarawak. A plethora of combinations of voice and data traffic routes now exist on this purely fibre network backbone from any point in Malaysia. Telekom Malaysia also has an optical fibre network spanning along the major railway network in Malaysia. In addition, at the local level, Telekom Malaysia’s switches are linked via an optical fibre network that offers a highly reliable mesh network services.
Dr. Md. Khir bin Abdul Rahman, Chief Executive of Telekom Malaysia commented: Our performance for this quarter has been encouraging. However, we will make some adjustments in anticipation of slower economic growth this year. Costs will be reduced through on-going business process re-engineering, reduction in cycle time and outsourcing of network maintenance. In the longer term, labour cost can be reduced as we expect staff numbers to decline through natural attrition and voluntary separation scheme. Nevertheless, we remain committed in our focus towards the growth areas of mobile and multimedia. We will also continue to upgrade our network to support broadband services. We believe, with the re-structuring of the organisation into independent business units, currently ongoing, their performance can be effectively monitored based on set performance targets and this will help to improve our bottom line. Overall, barring unforeseen circumstances and based on current continued business conditions, we are optimistic of Telekom Malaysia’s prospects for the remaining three quarters of the financial year
