Wednesday March 7, 2012
YTL Comms to break even
By YVONNE TAN
New product to help it boost subscribers to 1 million by year-end
KUALA LUMPUR: YTL Communications Sdn Bhd, which is part of YTL Corp Bhd, is moving closer to profitability with the launch of its Unlimited Super Postpaid Plans, its chief executive officer Wing K. Lee said.
The company is targeting to get 500,000 subscribers for the new plans by the end of this year, bringing its total Yes subscribers close to a million, which is the break-even figure for the company.
“Currently, we have more than 300,000 Yes subscribers; we're working hard to turn towards profitability soon,” he said after the launch of the post-paid plans.
Yes is a brand under YTL Communications which offers 4G mobile Internet with voice service. The service was launched in November 2010.
Currently, YTL's mobile broadband network segment is still loss-making in terms of earnings due to start-up and fixed operating costs. However, the company saw an improvement in revenue in its latest quarter due to growth in subscriber base.
Lee told StarBiz later that the company was not ruling out any merger and acquisition (M&A) plans should they “make sense”.
“We are continuously in discussion with companies, we could do it if it makes sense,” Lee said, without elaborating.
He said the company's focus remained on long-term growth. “Our board of directors is not chasing us for short-term growth.”
Analysts have said that it is extremely challenging for smaller firms to survive due to the high capital expenditure required in the industry and that merging some companies would be more ideal.
There are currently nine firms in the country which have licences to offer mobile services.
In a press release, YTL Communications said the Yes Unlimited Super Postpaid Plans comprised four plans with monthly subscription ranging from RM48 to RM168.
All plans came with unlimited data usage, speed of 20 megabits per second and free YES devices (with commitment), it said.