State-run Telekom Malaysia™ has posted a better-than-expected 39% hike in first quarter net profit due to a rise in income from its overseas businesses and foreign exchange gains. The company posted a net profit of MYR519 million (USD144 million) in the three months ended 31 March, up from MYR374.5 million in 1Q2005, on the back of a 10.9% increase in revenues to MYR3.79 billion. Much of the increase can be attributed to Telekom beginning to consolidate earnings of its 56.9%-owned subsidiary PT Excelcomindo Pratama in Indonesia.
TM’s mobile business contributed more than half of the group’s total revenue. Its total mobile customer base grew by 83% to 22.3 million in the quarter, thanks to double-digit growth of subscribers at Excelcomindo, Sri Lanka’s Dialog Telekom and TM International in Bangladesh over the previous twelve months. Fixed line services revenue fell by 11.8% year-on-year, but this was counteracted by its internet and multimedia business registering 38% growth.