Telekom Malaysia (TM) has seen a sharp gain in its first quarter profit, including gains from Indonesian mobile subsidiary PT Excelcomindo Pratama.

TM said in a statement late yesterday that its three months to March net profit rose 39 percent from a year earlier to RM518.95 million while revenue was up 11 percent at RM3.79 billion.

Excelcomindo, in which TM holds a 56.9 percent stake, contributed most of the gains in the company's cellular segment, it said.

TM said the domestic mobile business would remain "highly competitive" but that it would focus on improving revenue through better product offerings for both voice and data services.

Overseas operations

Overseas operations will remain "a focal area for us with an increasing contribution to the group," it said.

TM is aiming to strengthen its presence in South Asia, with operations in Sri Lanka and Bangladesh. It announced in March it would purchase a 49 percent stake in Indian provider Spice Telecom.

"The recent strategic entry into a high growth market in India will further strengthen TM's regional presence," it said.

TM said it expected the group's performance in the current financial year to be satisfactory.