TdC's Regional Data Transit Strategy Pays Off
TIME dotCom ' s (TdC) decision to focus on regional data centre and data traffic routing services appears to be paying off as demonstrated by the Malaysian operator ' s strong results for Q312 and nine-month period ended September 2012. Consolidated revenues grew by 28.9% and almost 43% year-on-year (y-o-y) in 9M12 and Q312, respectively, driven mostly by the new data centre business acquired in May 2012. The results reinforce BMI ' s view that this change of strategy is a long overdue move in the right direction for the company and makes better use of its valuable infrastructure and related assets.
Although voice revenues declined by 3.1% y-o-y in 9M12, this was more than offset by a 27.3% improvement in income from core data transit services as well as revenue generated by the newly-added data centres bu siness. In May 2012, TdC acquired AIMS Group , Global Transit Singapore and Global Transit Hong Kong , giving the comp any a presence outside Malaysia. International revenues totalled MYR8.23mn in 9M12, 2.4% of consolidated revenues. BMI expects such income to steadily account for a greater proportion of r evenues over time as TdC becomes more adept at making wholesale traffic carriage deals in the region and leverages the capacity it owns on the Asia Pacific Gateway (APG) submarine cable system.
TdC operate s a nationwide fibre-optic broadband network serving Malaysia ' s principal popula tion and business centres. A s such, it competes directly with incumbent Telekom Malaysia (TM) for customers, principally in the enterprise sector. Over the last five years, TM has radically overhauled its fixed-line infrastructure and has ultimately proved to be a more potent threat to TdC than it was when the independent operator was licensed. Be tween 2008 and 2010, TdC suffered significant operating and net losses amid intensified co mpetition and growing limitations of its legacy broadband assets .