Posted by busyweekly > 2014-08-14 15:59 | Report Abuse

KUALA LUMPUR, 10 August 2014 – ACE market-listed telecommunications service provider Instacom Group Berhad is seeking merger and acquisitions to diversify and broaden its earnings base. Instacom chief executive officer Anne Kung said that, although organic growth “is holding steady”, the company is challenging itself to move to the next level in its effort to maximize value for shareholders. “Due to our strong financial showing last year, we are now looking at potential acquisitions to explore growth opportunities with a view to realizing other streams of income,” she said in an interview with Business Times. Last year, Instacom posted revenue of RM120.434 million, an increase of RM94.869 million from the previous year, while profit before tax increased to RM25.466 million from RM17.793 million previously. However, for its first quarter of 2014, Instacom’s profit before tax slipped to RM4.658 million from the RM6.956 million posted in the previous corresponding period. This was due to lower revenue together with higher cost of sales. Nevertheless, Kung is “cautiously optimistic” that the company would continue to post satisfactory results for the current financial year on the back of promising prospects within Malaysia’s telecommunications industry. “Truth be told, the current operating environment is challenging. However, with the government planning to build a total of 1,000 telecommunication transmission towers in the next three years with an estimated investment of RM1.5 billion, we believe that our strength in delivering towers on schedule would stand us in good stead to see through another satisfactory year for the company,” she added. Instacom is an end-to-end solutions provider for the telecommunication industry with more than 10 years of experience and proven track record. It has a strong foothold in providing telecommunications network services to telecommunications carriers and operators all over Malaysia. The company also has close working relationships with major telecommunications infrastructure, hardware and equipment market players, and undertakes subcontract telecommunications network services related jobs from these players. http://www.nst.com.my/node/23148