Announcement Details :
The headline KPIs represent the main corporate targets set by TMI for the year and should not be construed as being forecasts. In this respect please note the following:
- These headline KPIs are targets or aspirations set by the company as a transparent performance management practice. These headlines shall not be construed as either forecasts, projections or estimates of the company or representations of any future performance, occurrence or matter as the headlines are merely a set of targets/aspirations of future performance aligned to the company's strategy and which have been derived on the assumption that the Group shall operate under the current business environment.
Major challenges in meeting the headline KPIs will include the followings:
- Increased competition in the mobile market in Malaysia, Indonesia, Sri Lanka, Bangladesh and Cambodia.
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Concentration of most of our Group's business activities is in the South and Southeast Asian region, and many of TMI's operating companies and investments are located in emerging market countries in this region. As a result, the Group's operating revenues and results of operations as well as future growth depend, to a large extent, on the growth of these economies as well as on the political and social developments in these countries.
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Currency fluctuations, liquidity shortages, and higher interest rates would also materially and adversely affect the economies of many countries in the Asia-Pacific region in general, and in Southeast Asia in particular.
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Laws and regulations, particularly fiscal policies affecting the economy as a whole and the telecommunications sector specifically, in these emerging markets also tend to be evolving and changing compared to mature markets. The Group may be adversely affected by any such change relating to telecommunications operators, licensing and services.
FY2008 Headline KPIs
Headline KPIs
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FY 2008 KPI
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1. Revenue Growth
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16%
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2. Earnings before Interest, Tax, Depreciation and Amortisation (EBITDA) Margin
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42%
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3. Return on Equity (ROE)*
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14%
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*ROE is computed as PATAMI / Average Capital & Reserves Attributable to Equity Holders of the Company
Moving Forward
The telecommunications industry will remain challenging and competitive in 2008 with continued offerings of innovative, attractive and competitive packages by industry players. The Group will embark on its twin engines of growth strategy, whereby it will first seek to unlock the value in its existing portfolio but also complement it with additional assets on an opportunistic basis. In addition to nurturing its existing OpCos, the Group will ensure the sharing of best practice and processes while introducing diversity in the organization whereby some of the best talent from the OpCos will be working at the holding company level and vice versa.
The Group's investment strategy remains to look at emerging markets, particularly with high growth potential, closer to home.
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