TIME's 1Q net profit eases on higher depreciation and staff costs, forex loss

KUALA LUMPUR (May 30): TIME dotCom Bhd's first quarter (1Q) net profit eased 0.78% to RM90.65 million, from RM91.35 million a year earlier, on higher depreciation charged, staff-related costs and impact of foreign exchange (forex) movements.

Earnings per share for the quarter ended March 31, 2022 slipped to 4.97 sen, from 5.04 sen, according to the group's bourse filing.

This was despite revenue rising 11.47% to RM369.35 million from RM331.33 million, as all core customer groups comprising retail, enterprise and wholesale contributed to revenue growth.

This, TIME added, was on the back of demand for data centres and data offerings from the group.

Depreciation charges during the quarter rose by RM2.6 million, while the group booked a net forex loss of RM3.9 million versus gain of RM8.3 million last year.

It also booked higher staff-related costs of RM12.7 million, as well as a RM4.6 million increase in advertising expenses plus flood relief donations. Finance costs also rose.

TIME commander-in-chief Afzal Abdul Rahim said the group is cautiously optimistic about demand growth for its offerings with the reopening of the economy.

"Strategically, the group remains invested in network expansion to support connectivity needs as well as help the nation achieve its digital economy objectives.

"Regionally, we are still seeing a healthy level of demand for both cross-border connectivity and data centre offerings. We will continue to innovate our products and services in order to meet customer requirements," Afzal said in a statement.

Shares of TIME fell nine sen or 1.99% to RM4.43, giving the group a market capitalisation of RM8.09 billion.