Last night, Instacom Group Berhad (IGB)’s financial performance continued where it left off from the last quarter to record continued strong growth during the first quarter of 2013. In an announcement to Bursa Malaysia this evening, IGB said that, for the current financial quarter ended 31 March 2013, the Group recorded revenue of RM30.210 million and profit before tax of RM6.828 million. Against the previous corresponding period, these numbers represent significant increases of RM29.350 million and RM9.895 million, respectively.
IGB Chief Executive Officer Anne Kung described the Q1 financial performance as “sterling and reflects how hard we are working in our quest for operational excellence and maximizing returns for all shareholders.”
The telecommunications industry is growing in leaps and bounds as Malaysia moves into the LTE (long term evolution) era with major operators looking to expand their data earnings. Mobile data traffic in Malaysia should double this year in line with the global trend,” she said, quoting a recent report by telecoms equipment firm Ericsson which foresees mobile data volumes rising by a compound annual growth rate of around 50% between 2012 and 2018.
The earnings jump is significant as the company had guaranteed at least RM15m in profits following the RTO exercise. It looks likely that that figure will be easily breached.
Besides being probably the best telco backend infra company, the company has its roots in East Malaysia, which should see a substantial deployment of investment to further enhance the connectivity and penetration in East Malaysia, hence they should be a prime beneficiary there.
Another aspect which they are currently looking at is the potential to move into ownership of telecom assets. They are looking into a tower REIT as an option. They have already started acquiring such assets and should make an announcement to monetise them in the near future.
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