Time dotCom’s results came broadly in line with expectations. Maintain NEUTRAL and MYR6.20 TP (2% upside), pending a conference call with management later today. Revenue grew double-digit YoY, supported by increased global bandwidth sales and non-recurring contracts. We expect no major changes to its 2H15 guidance, with domestic growth to still be driven by increasing demand for the LTE network rollouts.

• Results in line. Time dotCom’s (Time) 1Q15 core PBT of MYR38.7m (+71.2% YoY, -8.7% QoQ), excluding dividend income from DiGi (DIGI MK, NEUTRAL, TP: MYR6.60), came in line with our estimate at about 26.5% of full-year forecast, but slightly missed consensus full-year PBT forecasts. 1Q revenue rose 30.2% YoY mainly due to higher data revenue (+38.0% YoY) on the back of higher global bandwidth sales and non-recurring contracts. Data centre sales also grew 15.4% YoY, further contributing to overall revenue growth. EBITDA margin was stable at 40.5% this quarter. Capex incurred for the quarter stood at MYR93.2m, of which about MYR44m was spent on its APG, AAE-1 and FASTER cable systems.
• No major changes expected in 2H15. We believe that management’s guidance in its results call today will not deviate significantly from its earlier guidance. We expect domestic revenue growth to be supported by increasing demand for the long -term evolution (LTE) network rollouts, as local mobile operators have indicated that they will continue to investheavily in LTE in the near term. That said, we hope that management will be able to shed more light during the call on the status of its three cable systems as well as other growth opportunities, especially on its strategies to strengthen its ASEAN foothold.
• Forecasts. Unchanged, pending a briefing later today.
• Maintain NEUTRAL. Our DCF-based TP is maintained at MYR6.20(implying 22.4x FY15F P/E), pending a briefing later today. We reiterate that Time’s future re-rating catalysts will come from the commission of its new cables, although regulatory delays remain a key risk to the commission of the new cables.