Corporate Financial Analysis Cfa - Telekom Malaysia
Company Background
Telekom Malaysia Berhad (TM) was known as Malayan Telecommunications Department in 1946. TM was transformed to a corporation in 1987. Subsequently, TM had initial public offering and listing on Bursa Securities in 1990.
Over the years, TM has evolved as the largest telecommunications corporation in Malaysia with a current Group staff strength in excess of 36,000 with operations and interests in 13 countries, with nine key markets within Asia: Indonesia, Singapore, Cambodia, Thailand, Bangladesh, Pakistan, India, Sri Lanka and Iran.
TM is focused on delivering exceptional value to its customers and achieving sustainable growth in both local and international markets offering a comprehensive range of communication services. In Malaysia, TM’s mobile arm, Celcom (Malaysia) Berhad (Celcom), is Malaysia’s premier mobile communications provider, Celcom has steadily made its presence felt in the market through its innovations as the first mobile operator in Malaysia to launch 3G services commercially.
Meanwhile, on 28 September 2007, TM proposed to undertake a demerger exercise to separate its mobile and fixed businesses currently managed as one, into two business entities. On 10 December 2007, TM unveiled the final terms of the demerger which would ensure the Group continued to derive greater shareholder value from both businesses, and ultimately benefit all its stakeholder communities.
PART A – Ratio Analysis (Refer Appendix I for the calculations)
The aim of financial analysis is to evaluate the performance of a firm. The Du Pont Financial Analysis Model provides a distinctive aspect of the effectiveness of the firm’s policies or strategies in each area. In this model, four levers can be used to assess the firm’s financial structure and operating efficiency – operating management, investment management, financing strategy and dividend policies.
Ratio Summary 2007 2006 2005
Telekom Malaysia Berhad (TM) was known as Malayan Telecommunications Department in 1946. TM was transformed to a corporation in 1987. Subsequently, TM had initial public offering and listing on Bursa Securities in 1990.
Over the years, TM has evolved as the largest telecommunications corporation in Malaysia with a current Group staff strength in excess of 36,000 with operations and interests in 13 countries, with nine key markets within Asia: Indonesia, Singapore, Cambodia, Thailand, Bangladesh, Pakistan, India, Sri Lanka and Iran.
TM is focused on delivering exceptional value to its customers and achieving sustainable growth in both local and international markets offering a comprehensive range of communication services. In Malaysia, TM’s mobile arm, Celcom (Malaysia) Berhad (Celcom), is Malaysia’s premier mobile communications provider, Celcom has steadily made its presence felt in the market through its innovations as the first mobile operator in Malaysia to launch 3G services commercially.
Meanwhile, on 28 September 2007, TM proposed to undertake a demerger exercise to separate its mobile and fixed businesses currently managed as one, into two business entities. On 10 December 2007, TM unveiled the final terms of the demerger which would ensure the Group continued to derive greater shareholder value from both businesses, and ultimately benefit all its stakeholder communities.
PART A – Ratio Analysis (Refer Appendix I for the calculations)
The aim of financial analysis is to evaluate the performance of a firm. The Du Pont Financial Analysis Model provides a distinctive aspect of the effectiveness of the firm’s policies or strategies in each area. In this model, four levers can be used to assess the firm’s financial structure and operating efficiency – operating management, investment management, financing strategy and dividend policies.
Ratio Summary 2007 2006 2005