TM's Overseas Investments Register Strong Growth On Rising Regional Subscriber Base
Regional mobile customer base hits 31.8 million at end-June 2007, up 33 percent from same period in 2006
27 Jul 2007, Kuala Lumpur -- Telekom Malaysia Berhad (TM) recorded an impressive 18.9 percent growth in international revenues in the first half of 2007, rising to RM2.27 billion (USD1 = RM3.46) from RM1.91 billion during the same period last year. Setting aside the effects of the stronger Ringgit which eroded the translated numbers by 6.3 percent, the underlying growth pattern remains healthy.
TM, the emerging leader in Asian communications, stated that the growth was realized on the back of a regional mobile subscriber base of 31.8 million as at end-June 2007, up 33 percent from the end of the same period in 2006. Its subsidiaries in Indonesia (PT Exelcomindo Pratama), Bangladesh (TM International Bangladesh) and Sri Lanka (Dialog Telekom Plc) led the subscriber growth, standing at 10.2 million, 6.7 million and 3.7 million respectively.
South East Asia's second largest telecommunications company said that its international investments contributed 26 percent to TM Group revenues, which stood at RM8.5 billion as at end-June 2007. The corresponding contribution to Group PATAMI was 26 percent. Both numbers stood at 24 percent and 29 percent respectively at end-June 2006.
"With operations in nine Asian countries, international operations continue to contribute significantly due to our efforts to derive synergy and enhance value from our investments," said Yusof Annuar Yaacob, Chief Executive Officer of TM International Sdn Bhd, TM's international investment arm. "Total international capital expenditure in the first half of 2007 stood at RM1.84 billion, double that for the same period last year, driven primarily by aggressive network expansion in Indonesia as well as Bangladesh," Yusof stated, adding that the total capital expenditure plan for international investments for 2007 stood at RM4.9 billion.
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 (85.72 percent), India's Spice Communications Limited (39.2 percent), Singapore's MobileOne Limited (29.71 percent through Sunshare Invesments), 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 Company Limited (24.42 percent) and Samart Corporation Public Company Limited (18.98 percent).
Highlighting some key developments for its international investments in the first half of 2007, Yusof said that the successful listing of Spice Communications on the Bombay Stock Exchange this July saw TM doubling the value of its initial investment in the company. Oversubscribed 38 times, the listing has led to a current valuation of the company at approximately USD 1 billion. Other highlights include the emergence of TM as the largest telecommunications investor in Sri Lanka, having recently signed a USD300 million investment plan in Sri Lanka over the next 2 years, through its subsidiary Dialog. Dialog too has emerged as the first quadruple play operator in South Asia, with operations in cellular, broadband, satellite television and fixed wireless.
For 2007, TM will adopt a two-pronged strategy; firstly, to consolidate its leading position in existing regional markets, and secondly, study all new commercial opportunities in Asia in detail, with great focus on the Indochina market, in order to grow its existing regional footprint. "We will give particular focus on the dynamic economies of Indochina since these markets have great growth potential in the telecommunications sector," Yusof said.
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 RM37.09 billion (USD10.6 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).