Telekom: 3 more years of DAWO
Yesterday, Telekom Malaysia Berhad (TM) chairman Ir. Md Radzi Mansor announced that the tenure of Datuk Abdul Wahid Omar (DAWO) as the Group Chief Executive Officer has been extended for another 3-year term effective from July 1, 2007.
This is despite a shortfall of RM0.6 billion in the headline KPI for group revenue set for FY2006.
TM also announced that the group has recorded higher PATAMI (Profit After Tax and Minority Interest) of RM2.069 billion for the financial year ended 31 December 2006.
1 ) Revenue increased by 17.6% to RM16.4 billion
2 ) EBITDA improved to RM7.5 billion
3 ) Group’s mobile customers surpassed 28 million (Malaysia, Sri Lanka, Indonesia & Bangladesh)
The group also highlighted its 2006 headline KPI achievements:
1 ) Revenue: - From RM 13.9 billion (FY2005 Actual) to RM 16.4 billion (FY2006 Actual) - FY2006 KPI: RM 17.0 billion2. ) Earnings before Interest, Tax, Depreciation and Amortisation (EBITDA) Margin
- From 43.7%* (FY2005 Actual) to 45.9% (FY2006 Actual)
- FY2006 KPI: 45.9%
- The FY2005 Actual EBITDA Margin is excluding provision for DeTe Asia claim3 ) Return on Capital Employed (ROCE) where ROCE is defined as EBIT / Average capital employed
- From 9.3% (FY2005 Actual) to 11.7% (FY2006 Actual)
- FY2006 KPI: 10.6%%
Meanwhile, TM Board of Directors has proposed to declare a final gross dividend of 30 sen per share less tax of 27%, amounting to RM744.1 million.
Combined with the interim dividend of 16 sen per share less tax of 28% paid on 18 September 2006, the total dividend payout in respect of financial year 2006 would amount to RM1.135 billion. This represents a payout ratio of 55% which is within the dividend payout policy of 40% to 60% of PATAMI.
Download the PDF to see the financial results in detail.
Comments
I actually don't mind the missing of the revenue KPI as in the end, the meeting of the EBITDA and ROCE KPI's are more significant. At the very least, the relatively small difference to revenue KPI should not be indicative of too much asset-shedding to meet the ROCE KPI.
I'm still disturbed with the lack of a real economic value added dimension to the KPI of this GLC though... this should encompass also value to the nation which should be its primary drive. I.e. has the nation had to pay for Telekom's successes, much as the nation has had to pay for TNB's phyrric success as it was due to a rise in rates to consumers.
The question to ask also is, shouldn't we be really asking if DAWO should be promoted... to be head of Khazanah! Certainly he has proven himself more competent than his boss at really achieving KPIs! I'd argue DAWO's success has also been with more local talent, relatively less scandals and lower extents of polical shenanigans (moneyed or otherwise)... though of course this is sometimes unavaoidable for a GLC.
Posted by: A M Ubaidah S![[TypeKey Profile Page]](http://www.jeffooi.com/nav-commenters.gif)
|
February 24, 2007 05:17 AM
And we still hv to pay RM23 per month for rental of phone from TElekom whilst mobile operators have already abolish if not all of the access fees many moons ago? This is what monopoly do to us. Just to gain access to streamyx alone i hv to apply for a fixed line eventhough I may not have any use for the phone line.
Posted by: groo![[TypeKey Profile Page]](http://www.jeffooi.com/nav-commenters.gif)
|
February 24, 2007 12:25 PM
Extending the contract???? The man should be sacked. My TM fixed line has the voice messaging installed without my permission. If I do not pick up the phone it will automatic go to voice messaging. I did not ask for that. Isn't this daylight robbery?? Why should I have to go to TM to cancel the "stupid" free service??????
Posted by: AverageJoe![[TypeKey Profile Page]](http://www.jeffooi.com/nav-commenters.gif)
|
February 24, 2007 01:59 PM
It's very eazy to turnaround GLCs. Juz curb the little napoleons from spending, wala..higher profit...
Posted by: barney flinstone![[TypeKey Profile Page]](http://www.jeffooi.com/nav-commenters.gif)
|
February 25, 2007 10:39 AM
Dear AverageJoe, I have managed to call ( a few calls actually ) to Telekom and asked them to disable the voicemail thing. And my voicemail for my fixed line is gone now.
Posted by: remco![[TypeKey Profile Page]](http://www.jeffooi.com/nav-commenters.gif)
|
February 26, 2007 08:43 AM