Monday, February 28, 2011

Time dotCom 4Q pretax down at RM26.2m from RM31.4m yr ago on lower dividend income

KUALA LUMPUR: TIME DOTCOM BHD [] posted consolidated profit before tax of RM26.2 million, down 16.5% from RM31.4 million a year ago mainly due to lower dividend income received in the current quarter from its available-for-sale financial asset.

It said on Monday, Feb 28 that excluding investment income, the group's profit from operations was RM838,000 or 8.3% higher in the quarter ended Dec 31, 2010 than a year ago.

Its net profit rose 41% to RM44.37 from RM31.38 million a year ago, aided by deferred tax assets. Its revenue rose 13.7% to RM85.25 million from RM74.97 million while earnings per share were 1.75 sen.

Time dotCom said the improvement in 4Q10 was mainly due to higher revenue from the group's data business offset by a reduction in revenue from voice business.

'During the year, the group recognised RM18.50 million deferred tax assets arising principally from unabsorbed capital allowance available to the group less temporary differences in respect of excess of capital allowance over book depreciation.

'The deferred tax asset has been recognised to the extent that it is probable that future taxable profits will be available to offset the temporarily differences between the carrying amounts of assets and liabilities in the statement of financial position and their tax bases,' it said.

For FY10, its net profit jumped 224% to RM107.07 million from RM33.08 million, revenue rose 11.9% to RM321.08 million from RM286.81 million.

It said the higher revenue was boosted by the group's entry into the global bandwidth business and higher data revenue.

'This is despite including revenue from the payphone business which was disposed with effect from April 15, 2009, in the 2009 comparative. Excluding revenue from the payphone business, the group's revenue would have improved by RM47.6 million or 17% in the current year period.

'The group also recorded a sharp increase in its profit before tax from RM33.1 million for year ended 31 December 2009 to a profit before tax of RM88.9 million for the same period in 2010. The significant improvement can mainly be attributed to improvement in revenue, cost cutting and de-gearing measures undertaken by the group,' it said.

Time dotCom said the group's results in 2009 were also affected by a loss on disposal of DiGi.com shares amounting to RM17.4 million and voluntary separation costs of RM11.7 million.

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