TimeCom ... Mar10

Time dotCom Bhd is slowly finding its way back into the radar of investors following its recent feat of returning to the black and beginning to get the attention of potential investors.

Helped by three consecutive quarters of posting operating profits, TdC returned to the black with a net profit of RM33.1 million for the financial year ended 2009 from a net loss position previously.
The net profit was recorded on the back of RM286.8 million in revenue, a period which saw TdC recording stronger data and Internet revenue, offset by the loss of revenue from its payphone business that was disposed of in the second quarter of 2009.

The turnaround after TdC’s many years of losses attributied it to aggressive cost-cutting measures, increase in investment income and sharp drop in depreciation.

Between 2004 and 2008, TdC posted net losses with a whopping RM949.63 million in FY2008 and RM833.24 million in 2004. In between those financial years, the company had posted net loss of RM238.9 million in FY05, RM177.78 million in FY06 and RM160.67 million in FY07.

In the absence of future large negative writebacks coupled with the stabilisation of TdC’s business, the possibility of the group sustaining profits in the coming years is good.

On Oct 7, 2008, Khazanah announced that it had entered into conditional agreement with Global Transit International Sdn Bhd (GTI), a local telecommunications entity, to improve the operational performance of its investee company TdC.

Khazanah’s move and the new team’s ability to lead the company out of the red was evidence that the move is bearing fruit. Now, it may turn out to be a move that is not only financially benefiting Khazanah, but also lead to TdC’s successful turnaround exercise.