TIME's 4Q net profit up on higher revenue, declares 14.69 sen dividend

KUALA LUMPUR (Feb 28): TIME dotCom Bhd’s net profit grew 12.57% to RM122.24 million for the fourth quarter ended Dec 31, 2022 (4QFY2022), from RM108.59 million in the previous year, mainly due to higher recurring data revenue.

Consolidated revenue jumped 14.6% to RM425.3 million for 4QFY2022, compared with RM371.1 million previously, according to a bourse filing on Tuesday (Feb 28) by the internet service provider.

“One-off non-recurring revenue and adjustments of RM10.6 million and RM9.9 million were recorded from data and data centres in 4QFY2022, compared with RM13.4 million recorded from data centres in 4QFY2021,” TIME said.

Excluding one-off non-recurring revenue and adjustments, the group said consolidated revenue increased by RM47 million or 13.1% for the current quarter under review, due to higher recurring data revenue, which grew RM42.7 million or 15.9%, and data centre revenue, which grew RM4.8 million or 6.5%.

“All core customer groups registered solid year-on-year recurring revenue growth, with the largest growth contribution coming from retail, followed by wholesale customers,” TIME said.

For FY2022, net profit increased by 14.43% to RM449.91 million, from RM393.16 million a year earlier. TIME also saw a record-high revenue in FY2022 as consolidated revenue was at RM1.58 billion, 12.9% higher than the RM1.4 billion in FY2021.

“One-off non-recurring revenue and adjustments accounted for RM45.2 million out of the total consolidated revenue recognised in FY2022 (FY2021: RM25.3 million),” TIME said.

“Excluding one-off non-recurring revenue and adjustments, the overall consolidated revenue increased RM159.5 million or 11.6% when compared to the similarly adjusted revenue for the corresponding period in the preceding year.”

Earnings per share (EPS) expanded to 6.66 sen for 4QFY2022, from 6.01 sen in the previous year, while cumulated EPS expanded to 24.58 sen from 21.63 sen.

TIME declared an ordinary interim of 12.33 sen and a special interim tax-exempt dividend of 2.36 sen per ordinary share, which will be paid on March 24. This brings the group’s total dividend for FY2022 to 31.03 sen (FY2021: 21.37 sen per share).

On its outlook, the group said it is cautiously optimistic that demand across all customer segments will remain robust, in particular for data and cloud services in the retail and enterprise segments.

“The group remains committed to expanding its network coverage throughout Malaysia and ensuring strong network availability,” TIME said, adding that it would continue its focus on product and service innovation and enhancing overall customer experience, while remaining vigilant on mitigating external risks’ impact on its operations.

TIME closed two sen lower at RM5.35 a share on Tuesday, translating into a market capitalisation of RM9.84 billion. The counter has rallied since Oct 17, 2022, putting on 21.87% from RM4.39.