Hong Leong Investment Bank Research said the company's retail business gaining momentum on the back of reach expansion and undisputable high-value products.
PETALING JAYA: Prospects are looking fairly bright for TIME Dotcom Bhd
(TdC), particularly with its retail business gaining momentum on the back of reach expansion and undisputable high-value products, says Hong Leong Investment Bank Research.
Chalking a net profit of RM110.7mil for the quarter ended March 31, the research unit said TdC’s results had matched expectations.
The telecommunications service provider’s quarter-on-quarter (q-o-q) bottom line have been supported by a higher margin for earnings before interest, tax, depreciation and amortisation (Ebitda), improved contribution from associates as well as a lower tax rate.
Revenue slid 1% q-o-q as turnover growth in its cloud segment was offset by declines in its voice and data divisions.
“However, the gain in net earnings was attributable to a higher Ebitda margin, increased contribution from associates and lower effective corporate tax rate of 26%,” the research house said.
Furthermore, it said TdC’s regional associates, including AIMS Data Centre, Vietnam’s CMC Telecommunications and Symphony Communication Public Co Ltd of Thailand, had contributed a total of RM15mil to the group’s earnings in 1Q24, up 120% year-on-year.
