Time dotCom’s 1Q profit falls 33.55% on forex losses

by **Cals** Thu 02 Jun 2016, 02:21

Time dotCom’s 1Q profit falls 33.55% on forex losses

By Tan Siew Mung / The Edge Financial Daily | June 1, 2016 : 12:53 PM MYT

This article first appeared in The Edge Financial Daily, on June 1, 2016.

KUALA LUMPUR: Time dotCom Bhd’s net profit fell 33.55% to RM37.6 million for the first quarter ended March 31, 2016 (1QFY16), from RM56.58 million a year ago, following a net loss in foreign exchange (forex) of RM8.1 million due to a strengthening of the ringgit against the US dollar.

This was despite the group’s revenue rising 2.03% to RM175.2 million from RM171.71 million.

The group recorded a net forex gain of RM9 million in 1QFY15, due to a weaker ringgit at the time.

Excluding the impact of forex, the group said it would have reported an adjusted consolidated pre-tax profit of RM44 million, which would be 14% higher than the adjusted consolidated pre-tax profit of RM38.7 million in 1QFY15.

The higher adjusted pre-tax profit in 1QFY16 was mainly due to cost efficiencies and lower depreciation, it added.

The group also said it posted one-off revenues from global bandwidth sales, and non-recurring contracts accounted for RM31.7 million of total data revenue recognised in 1QFY15, versus RM4 million in 1QFY16.

Excluding the one-off revenues from global bandwidth sales and non-recurring contracts, overall revenues in 1QFY16 would have shown a 22.2% increase when compared with the similarly adjusted revenue in 1QFY15, the group said.

Recurring data revenue increased 22.4% on a year-on-year basis, while data centre and voice revenues grew 27.5% and 14.9% respectively.