TIME dotCom starts turnaround, exits payphone ops

 

TIME dotCom Bhd (TdC) (5031) announced that it has commenced its turnaround by exiting the payphone business under its subsidiary, TIME Reach Sdn Bhd (TRSB).

TRSB would be divested to a local prepaid fixed line telephony company, Paycomm Sdn Bhd for RM8.3 million cash.

The transaction is expected to be finalised by the end of February 2009.

In a statement yesterday, TdC chief executive officer Afzal Abdul Rahim said the move was in line with the company's aim to focus on its more profitable operations that have greater growth potential.

“These include wholesale and supply as well as corporate businesses that span managed services, network, data and broadband services,” he said.

TRSB is principally engaged in the operations and maintenance of its 30,000 unit payphones located nationwide.

Revenue contribution by TRSB to its parent company has been receding at an average of 15 per cent over the last four years.

For the financial year ended December 31, 2007, TRSB’s revenue declined by 25.3 per cent to RM82.8 million versus RM110.8 million in 2006.

As to TdC's other turnaround initiatives, Afzal said: “We are highly committed and are in the midst of identifying several recovery programmes with an objective of returning TdC to profitability in the long term.

“TRSB will be the only asset divestment made by TdC in the near future and recovery of the group will mainly focus on strengthening our operational capabilities, improving competitiveness as well as cost management,” he added. — Bernama