revenue growth


Stepping up for Digital Sarawak

Over the past few years, under the stewardship of Chief Minister Datuk Patinggi Abang Johari Tun Openg, Sarawak has been placed on the fast track to developing its digital economy as part of the government’s effort to further boost Sarawak’s economic position in Malaysia. As Sarawak syncs itself with a world that’s growing constantly more […]

Citigroup executives see better growth ahead, but not yet

NEW YORK, July 14 — Citigroup Inc is still on track to hit its goals for efficiency and revenue growth, executives said yesterday, as analysts pressed them to explain how those expectations line up with second-quarter results. Although Citigroup… sees 7.1% rise in net profit in Q2, declares 4.9 sen dividend

PETALING JAYA: Bhd's net profit for the second quarter (Q2) ended June 30, 2018 grew 7.1% to RM384.34 million from RM358.89 million a year ago on the back of stronger earnings before interest, tax, depreciation and amortisation (ebitda), lower capital expenditure (capex) spending and higher operation cash flow.

Revenue for the quarter under review expanded to RM1.62 billion from RM1.55 billion.

The group has proposed to declare an interim dividend of 4.9 sen for the quarter under review.

For the first six months of the financial year, Digi's net profit went down 5.3% to RM770.45 milliom compared with RM732 million last year, while revenue increased to RM3.25 billion from RM3.13 billion.

Digi told Bursa Malaysia that its service revenue increased 2.1% to RM1.48 billion in Q2, underpinned by solid postpaid and internet revenue growth.

Taking cue from its strong performance in the first half of the financial year, Digi's focus for the next six months, will be on stepping up growth and efficiencies by executing strategies in focus areas of growth across postpaid and prepaid; leveraging on data driven-insights and customer segmentation; and delivering on cost agenda on a platform of sustainable and efficient cost structure.

“Albeit with continued market challenges ahead in the second half of 2018, Digi will continue to aim towards improving 2018 service revenue growth development, sustaining ebitda margin around 46%-47% and delivering efficient capex between 10%-12% of service revenue.”

The stock fell 2 sen or 0.5% to close at RM4.16 on 2.3 million shares traded.

Alliance Bank eyeing 10% net profit growth for FY19

KUALA LUMPUR: Alliance Bank Malaysia Bhd is targeting a net profit growth of 10% for the financial year ending March 31, 2019 (FY19), driven by its asset growth and transformation initiatives.

At a press conference after its AGM here today, group CEO Joel Kornreich said the bank is also eyeing a revenue growth of 6% and loan growth of 10%.

For FY19, it will scale up growth of its core transformation initiatives, which are SME banking expansion, Alliance One account and [email protected]

The bank anticipates that these strategic business focuses will help to achieve its FY19 targets.

Groupon surges on report discounts provider is seeking a buyer

NEW YORK, July 9 — Groupon Inc surged as much as 14 per cent after a report that the discount-slinging website is actively seeking a buyer. The merchandise and voucher vendor has approached several public companies in recent weeks to try to drum…

Banks outlook in 2H18: Bright or bleak?

Investors are keen on gauging the overall health of the local financial sector, specifically assessing if the recent shares selloff presents investors with a good buying opportunity. It has been a steady quarter for banks in Malaysia – domestic loan growth in the first quarter of 2018 (1Q18) of most banks was above the industry […]

AirAsia’s fundamentals intact, investors to be assured

KUCHING: AirAsia Group Bhd’s (AirAsia) business model remains intact in spite of negative news flow and rising jet fuel prices and analysts advocate investors to look past these short-term pressures. In an aviation sector update, the research arm of Kenanga Investment Bank Bhd (Kenanga Research) found AirAsia’s share price compelling at this juncture after it […]

TM announces PIP 2018, to roll out new broadband plans

KUCHING: In line with the government’s call for more affordable broadband packages, Telekom Malaysia Bhd (TM) yesterday announced the revision of its headline key performance indicators (KPI) as well as the implementation of Performance Improvement Programme 2018 (PIP 2018) and the introduction of new broadband plans. In an announcement on Bursa Malaysia, TM noted that […]

TM revises revenue growth to flat, -1pc

KUALA LUMPUR, July 3 — Telekom Malaysia Bhd (TM) is revising its revenue growth to flat or negative 1 per cent this year from 3.5 to 4 per cent as set previously in Feb due to persistent market headwinds in the telecommunication industry. TM…

Lower broadband prices will eat into TM’s earnings: Analysts

PETALING JAYA: Analysts have slashed earnings forecasts for Telekom Malaysia Bhd (TM) by as much 20% after Multimedia and Communications Minister Gobind Singh Deo indicated that broadband prices will drop by at least 25% by year-end.

The news also sent TM's share price down by as much as 14% today to a day low of RM3.12. At market close, the stock was 49 sen or 13.5% down at RM3.14 on volume of 68.53 million shares.

PublicInvest Research expects TM to post a reduction of 8% to 30% in average revenue per user (ARPU) but its subscriber base could rise 15% annually as broadband becomes more affordable. It will also prompt TM to be more aggressive in implementing cost-cutting measures in order to grow its bottom line.

After taking into account lower ARPU, higher customer base and lower operating costs, PublicInvest Research has cut its FY18-20 earnings forecasts for TM by 6% to 20%. Its target price for the telco's share is reduced from RM5.60 to RM4.65 with a “trading buy” call.

Given subdued revenue growth, PublicInvest Research believes TM's management will be more aggressive in implementing cost rationalisation measures in order to deliver earnings growth beyond FY19.

“We reckon areas for cost efficiency improvement include direct and manpower cost, which accounts for 40% of total cost.”

Due to the negativity surrounding TM and the industry, MIDF Research has downgraded its call recommendation to “sell” from “neutral” with a lower target price of RM3.02 from RM4.09.

“To be on the conservative side, we are cutting FY18 and FY19 earnings estimates downward by -1.7% and -10.4% respectively as we reduce our broadband ARPU assumptions to reflect the government initiative of making internet services more accessible to the masses.”

The research house opined that any cost-saving initiative programme implemented by TM would be inadequate to match the reduction in broadband prices.

“In addition, due to the earnings pressure and the group's commitment capex commitment for long-term growth, we expect the dividend payment to remain unattractive as well.”

AmInvestment Bank, meanwhile, said a 25% reduction in Unifi (TM's broadband service) revenue alone could potentially wipe out almost 90% of TM's FY19 earnings. “Including a similar reduction in Streamyx revenue, it will translate to a slight loss for TM.”

Following that, the research house expects TM to continue appealing to the government to reconsider its decision as such a drastic cut will derail the group's capex rollout programme under the High-Speed Broadband 2 drive to connect suburban and rural areas.

“This will also hinder plans to provide internet access throughout Malaysia, which Gobind indicated may be recognised as a basic human right by the government.”

AmInvestment Bank also noted that the national agenda to reduce broadband prices together with TM's convergence strategy to offer quad-play services to eventually lead the path towards sector consolidation as the need for a potential re-merger with Axiata Group is re-accentuated by its weak Q1 18 results.