TM's Overseas Subscriber Growth Contributes to Strong 3Q Results
Regional mobile customer base hits 35.7 million mark led by growth in Indonesia, Bangladesh and Sri Lanka
21 Nov 2007, Kuala Lumpur -- Telekom Malaysia Berhad (TM), Southeast Asia's second-largest telecommunications company, continued its stellar performance in international revenue growth by recording a 17.3% increase in the nine months ended September 2007, rising to RM3.52 billion (USD1 = RM3.36) from RM3 billion during the same period last year. Setting aside the effects of the stronger Ringgit which eroded the translated numbers by 7 percent, the underlying growth pattern remains healthy.
The increase in revenue was realized on the back of a regional mobile subscriber base of 35.7 million as at end-September 2007, up 34.7% from 26.5 million the same period a year earlier. The company's subsidiaries in Indonesia (PT Excelcomindo Pratama), Bangladesh (TM International Bangladesh Limited) and Sri Lanka (Dialog Telekom PLC) led the subscriber growth, standing at 12.8 million, 7.0 million and 4.0 million, respectively.
TM's international investments contributed 26.9% to TM group's total revenue of RM13.1 billion in the nine-months ended September 2007, an increase from 25% the same period a year ago.
"With a strong presence in nine Asian countries, our international operations continue to sustain growth despite intense competition in all markets particularly Sri Lanka, Indonesia and Bangladesh," said Dato' Yusof Annuar Yaacob, Chief Executive Officer of TM International Sdn Bhd, TM's international investment arm. "Total international capital expenditure in the nine months ended September 2007 stood at RM2.66 billion, an increase of 83% compared to the same period last year. The growth was driven by aggressive network expansion in Sri Lanka and Indonesia, with a surge of 173% to RM398 million and a rise of 93% to RM1.77 billion, respectively."
Headquartered in Kuala Lumpur, Malaysia, TM's Asian mobile operations include stakes in Indonesia's PT Excelcomindo Pratama Tbk (67.02 percent), Bangladesh's TM International (Bangladesh) Limited (70 percent), Sri Lanka's Dialog Telekom Plc (84.83 percent), India's Spice Communications Limited (39.2 percent), Singapore's MobileOne Ltd (29.7 percent through SunShare Investments Ltd), Cambodia's Telekom Malaysia International (Cambodia) Company Limited (100 percent) and Iran's Mobile Telecommunications Company of Esfahan (49 percent). It has non-mobile operations in Pakistan's Multinet Pakistan (Private) Limited (89 percent), Thailand's Samart I-Mobile Public Company Limited (24.42 percent) and Samart Corporation Public Company Limited (18.97 percent).
Among key developments of TM's international investments in the third quarter of 2007 was Dialog's signing of the US$ 70 million term loan facility and US$ 30 million equity commitment from the International Finance Corp, a member of the World Bank Group in September. The loan facility will enable Dialog to improve public access to affordable and reliable telecommunication services by increasing capacity and extending coverage, particularly in rural and under served areas. The funding package will aid Dialog's emergence as the first quadruple play operator in South Asia, with operations in cellular, broadband, satellite television and fixed wireless.
Commenting further on strategies going forward, Dato' Yusof said TM International, "will be sharing best practice and enhancing synergies among subsidiaries, aggressively managing cost to improve margins and operational efficiency and selectively seeking new opportunities to expand regional footprint, with particular focus on Indochina."
TM, the emerging leader in Asian communications, offers a comprehensive range of communication services and solutions in fixed-line, mobile, data and broadband. As one of the largest listed companies in Malaysia with a market capitalisation of RM37.15 billion (USD11.05 billion), TM delivers value to its stakeholders in a highly competitive home environment.
The Group places emphasis on continuing customer service quality enhancements and innovations. Currently, with investments and operations in 13 countries around Asia and globally, TM is focused on achieving sustainable growth in both the local and international markets.
TM has interests in nine key markets within Asia - Indonesia, Singapore, Cambodia, Thailand, Bangladesh, Pakistan, India, Sri Lanka and Iran, managed by its international investments holding arm TM International. TM has an impeccable track record of adding value to its investments, working closely with its subsidiaries to achieve strong market positions and profitability.
For further information on TM, visit www.tm.com.my (International Operations).