Telekom Malaysia's net profit soared 64 percent to RM1.39 billion in calendar 2003 due to enhanced earnings from its cellular business.

Sales grew 20 percent year-on-year to RM11.80 billion, primarily on its cellular segment, data and non-telecoms services, the Malaysian communications giant said.

The significant rise in cellular revenue was mainly due to the consolidation of Celcom Bhd, a subsidiary acquired in the second quarter of last year.

Pretax profit rose 18.3 percent year-on-year to RM1.81 billion due to higher contributions from the cellular segment and one associate company.

On a quarterly basis, net profit rose to RM499.76 million in the three months to December from RM102.64 million a year earlier.

Fourth-quarter sales grew 24.8 percent year-on-year to RM3.2 billion, while pretax profit increased 107.2 percent to RM511.30 million.

Stronger growth in 2004

Compared with the third quarter, the fourth quarter sales were down 3.2 percent mainly due to lower revenue from data services, while pretax profit rose 12.2 percent on higher contributions from associates.

Telekom said it expects the telecoms industry to grow in 2004 in line with the strong economic outlook.

With the continuing increase in demand for mobile services, wireless access, bandwidth and data services will drive stronger revenue growth, the company said.

Telekom Malaysia Bhd. expects to derive benefits from the completion of the Celcom-TM Cellular integration later in the year, it added. - AFP