Telekom Malaysia sees spike in first quarter profits

KUALA LUMPUR, May 16, 2006 (AFP) – Malaysia’s largest telecommunications provider Telekom Malaysia has seen a sharp gain in its first quarter profit, including gains from Indonesian mobile subsidiary PT Excelcomindo Pratama. Telekom said in a statement late Monday that its three months to March net profit rose 39 percent from a year earlier to 518.95 million ringgit (144 million dollars) while revenue was up 11 percent at 3.79 billion ringgit.

Excelcomindo, in which Telekom holds a 56.9 percent stake, contributed most of the gains in the company’s cellular segment, it said.

Telekom Malaysia said the domestic mobile business would remain “highly competitive” but that it would focus on improving revenue through better product offerings for both voice and data services.

Overseas operations will remain “a focal area for us with an increasing contribution to the group,” it said.

Telekom is aiming to strengthen its presence in South Asia, with operations in Sri Lanka and Bangladesh.

It announced in March it would purchase a 49 percent stake in Indian provider Spice Telecom.

“The recent strategic entry into a high growth market in India will further strengthen TM’s regional presence,” it said.

Telekom Mal