|
Type |
Reply to query |
| Reply to Bursa Malaysia's Query Letter - Reference ID | NM-060803-52432 |
| Subject | ARTICLE ENTITLED: "TM 2Q net up 4%" |
"... the group may not achieve its FY06 key performance indicators' revenue target of RM17 billion... "
Telekom Malaysia Berhad wishes to reiterate the following:
§ The headline KPIs announced on 22 March 2006 are merely a set of 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. These headline KPIs shall not be construed as forecasts, projections or estimates of the Company or representations of any future performance, occurrence or matter.
§ Though these targets have taken into account the changing dynamics of both local and overseas business environment in the telecommunication industry, they are nevertheless stretched when benchmarked against other multi-services peers of the industry. Major challenges will include the continued intense competition in the cellular segment typified by price wars, change in consumer behaviour affecting the fixed line business and exposure to political, economic and regulatory changes in the various countries we operate.
Dato’ Abdul Wahid Omar, Group CEO when posed a question by a reporter regarding the achievability of the KPIs, made reference to the above points that the KPIs are stretched and taking into consideration the declining contribution from the Group’s fixed-line business and competitive pressure in the domestic mobile market, achieving them would prove to be a challenge.
Nevertheless, the Group is focused on improving the profitability of its core businesses while building on its execution capacity and has taken the first step with the launch of a Performance Improvement Program as announced on 3 August 2006.
We refer to the above news article appearing in The Sun, The Edge Daily,
Business News, page 17, on Thursday, 3 August 2006, a copy of which is enclosed
for your reference.
In particular, we would like to draw your attention to the underlined sentence,
which is reproduced as follows:-
"...the group may not achieve its FY06 key performance indicators' revenue
target of RM17 billion..."
In accordance with the Securities Exchange's Corporate Disclosure Policy, you
are requested to furnish the Securities Exchange with an announcement for
public release confirming or denying the above article and in particular the
underlined sentence after due and diligent enquiry with all the directors,
major shareholders and all such persons reasonably familiar with the matter
about which the disclosure is to be made in this respect. In the event you deny
the above sentence or any other part of the above reported article, you are
required to set forth facts sufficient to clarify any misleading aspects of the
same. In the event you confirm the above sentence or any other part of the
above reported article, you are required to set forth facts sufficient to
support the same.
Please furnish the Securities Exchange with your reply within one (1) market
day from the date hereof.
Yours faithfully
JOHAN ABDULLAH
Head, Issues & Listing
Group Regulations
TYE/NMA
c.c:- Encik Chung Tin Fah, Securities Commission (via fax)
| Company Name | TELEKOM MALAYSIA BERHAD |
| Stock Name | TM |
| Date Announced | 4 Aug 2006 |
| Category | General Announcement |
| Reference No | TM-060804-CD9E8 |