Greetings, fellow investors and market watchers! Today, we’re diving deep into the latest financial disclosures from TIME DOTCOM BERHAD, a prominent player in Malaysia’s telecommunications and data center landscape. The company has just released its first-quarter results for the period ending 31 March 2025, and there’s plenty to unpack. While the report highlights a commendable increase in revenue, a closer look reveals some shifts in profitability and significant movements in its cash position. Let’s break down the numbers and understand what this means for TIME.
Q1 2025 Performance at a Glance: Revenue Up, Profitability Shifts
TIME DOTCOM BERHAD reported a solid revenue increase for the first quarter of 2025, demonstrating continued top-line growth. However, the company’s profit before tax saw a slight dip, influenced by various factors including foreign exchange movements and changes in contributions from associates. A notable event during the quarter was a substantial dividend payout, which impacted the company’s cash and equity position.
Overall Financial Performance: A Mixed Bag
For the first quarter ended 31 March 2025, TIME DOTCOM BERHAD achieved a consolidated revenue of RM428.6 million, marking a positive increase of 2.6% compared to RM417.8 million in the corresponding quarter of the previous year. This growth was primarily driven by its retail customer segment, underscoring the strength of its core services.
However, the picture on the profitability front is more nuanced. The Group’s consolidated profit before tax (PBT) for Q1 2025 stood at RM146.6 million, a decrease of 2.8% from RM150.8 million in Q1 2024. Despite this, the profit for the period remained largely stable at RM112.313 million, a marginal increase from RM112.277 million in the prior year’s corresponding quarter. Profit attributable to owners of the Company also saw a slight uptick, reaching RM112.993 million, up 2.1% from RM110.672 million.
Basic earnings per share (EPS) for the quarter improved slightly to 6.11 sen, compared to 5.99 sen in the same period last year.
Q1 2025 Key Financials
Operating Revenue: RM428,585k
Profit Before Tax: RM146,628k
Profit for the Period: RM112,313k
Profit Attributable to Owners: RM112,993k
Basic Earnings Per Share: 6.11 sen
Q1 2024 Key Financials
Operating Revenue: RM417,765k
Profit Before Tax: RM150,837k
Profit for the Period: RM112,277k
Profit Attributable to Owners: RM110,672k
Basic Earnings Per Share: 5.99 sen
The decline in profit before tax can be attributed to several factors. The company experienced a lower share of profit from associates and jointly controlled entities, a decrease in interest income, and a significant swing from a net foreign exchange gain of RM4.5 million in Q1 2024 to a net foreign exchange loss of RM4.1 million in Q1 2025. Additionally, higher personnel costs contributed to the reduced profitability, though these were partially offset by lower depreciation and amortisation expenses.
Business Unit Performance: Data Leads the Way
A look at the revenue breakdown by product segment reveals the core drivers of TIME DOTCOM’s growth:
| Segment | Q1 2025 (RM’000) | Q1 2024 (RM’000) | Change (%) |
|---|---|---|---|
| Voice | 10,987 | 11,941 | -8.0% |
| Data | 378,339 | 356,464 | +6.1% |
| Cloud and other services | 37,797 | 48,594 | -22.2% |
| Others | 1,462 | 766 | +90.8% |
The Data segment continues to be the powerhouse, showing robust growth of 6.1%, contributing significantly to the overall revenue increase. This highlights the ongoing demand for high-speed connectivity, a key strength for TIME. Conversely, the Voice segment saw an 8.0% decline, a trend consistent with the broader industry shift away from traditional voice services. The Cloud and other services segment also experienced a notable decrease of 22.2%, which is a point to monitor as this segment typically offers higher-margin services. The ‘Others’ category, though small, showed substantial percentage growth.
Financial Health and Cash Flow: The Dividend Impact
The balance sheet as at 31 March 2025 shows total assets at RM4,461,237k, down from RM5,037,966k at 31 December 2024. Total equity also decreased to RM3,341,732k from RM3,932,102k over the same period. This significant reduction in both assets and equity is largely attributable to the substantial dividend payout during the quarter.
The cash flow statement clearly illustrates this. While net cash generated from operating activities was RM89,061k, the net cash used in financing activities amounted to a hefty RM706,897k. This was primarily driven by a dividend payment of RM700,147k to owners, a substantial increase from RM280,096k in Q1 2024. This payment reflects the company’s commitment to returning value to shareholders, but it naturally led to a significant decrease in cash and cash equivalents, which ended the quarter at RM515,457k, down from RM1,237,360k at the beginning of the year.
On 27 March 2025, TIME DOTCOM paid an ordinary interim dividend of 10.42 sen and a special interim dividend of 27.45 sen per ordinary share for the financial year ended 31 December 2024. This combined payout of 37.87 sen per share is a strong return to shareholders, albeit impacting the immediate cash reserves.
Risks and Prospects: Navigating a Dynamic Landscape
Looking ahead, TIME DOTCOM BERHAD remains focused on its long-term growth strategy. The company plans to continue investing in network coverage expansion and leverage its strong execution track record to deliver innovative products and solutions. The emphasis on driving sustainability practices and exploring new renewable energy businesses also highlights its commitment to future-proofing its operations and tapping into emerging market opportunities.
However, the report also implicitly points to areas that require careful navigation:
- Foreign Exchange Volatility: The swing from a net foreign exchange gain to a loss significantly impacted the profit before tax, indicating the company’s exposure to currency fluctuations.
- Segment Performance Divergence: While data services are thriving, the decline in voice and cloud services revenue suggests a need for strategic adjustments or renewed focus in these areas to maintain overall growth momentum.
- Strategic Investments and Shareholding Changes: The company’s effective interest in AIMS Data Centre diluted from 51% to 30% after the quarter end due to the conversion of ICPS. While this was part of a strategic partnership announced earlier, it means a smaller share of profit contribution from this entity going forward.
Despite these challenges, the company’s stated commitment to operational efficiency and capitalising on evolving domestic, regional, and global opportunities suggests a proactive approach to mitigating risks and ensuring business sustainability.
Summary and Outlook
TIME DOTCOM BERHAD’s Q1 2025 results present a mixed but generally stable financial picture. The company successfully grew its top line, largely driven by its robust data segment, which continues to be a key growth engine. While profit before tax experienced a slight decline due to factors like foreign exchange movements and lower associate contributions, the profit for the period remained resilient. The substantial dividend payout underscores the company’s commitment to shareholder returns, even as it impacts its cash reserves.
The strategic dilution of its effective interest in AIMS Data Centre and the decline in its Cloud and Other Services revenue are areas that investors might want to observe closely in future reports. Nevertheless, the company’s forward-looking statements emphasize continued investment in network expansion, operational efficiency, and sustainability, positioning it for long-term growth in the dynamic telecommunications and data center industry.
Key points from this report to consider:
- Solid revenue growth driven by the core data segment.
- Profitability impacted by forex losses and lower share of profit from associates/JCE.
- Significant dividend payout affecting cash and equity.
- Strategic adjustments in AIMS Data Centre ownership.
- Commitment to network expansion and sustainability for future growth.
What are your thoughts on TIME DOTCOM’s Q1 2025 performance? Do you think the company can maintain its revenue growth momentum while navigating the challenges in its other segments and managing currency fluctuations? Share your insights in the comments below!
