YTL may offer new personalised digital hybrid TV

Deal with Sezmi TV expected for exclusive rights in Asia

PETALING JAYA: YTL Communications Sdn Bhd (YTL Comms), which is gearing to launch its WiMAX-based services on Nov 18, is expected to sign an agreement with US-based Sezmi TV for a new personalised digital television content offering on its network.

It is learnt that the agreement will give YTL Comms exclusive rights to offer hybrid TV services, comprising traditional TV, on-demand and Internet content to Malaysia and the Asian region.

It may take YTL Comms a year to roll out the services in Malaysia. The overall cost of bringing digital TV on its network to TV screens, computers and via mobile screens may be a whopping RM1bil to RM2bil. This amount would also cover the extension of the services to the region, sources said.

It is unclear how YTL Comms will fund this venture.

Separately, YTL Comms – a unit of YTL Power Bhd – is investing RM2.5bil to build its WiMAX network which will have nationwide coverage by Nov 18.

“It is really an alternative for TV viewers and it comes in digital format and can be delivered via various ways,” said a source.

Sezmi is based in California and is a four-year-old Silicon Valley start-up. It is offering an Internet-connected set-top box with a digital aerial. It combines free over-the-air channels with net content and uses spare bandwidth on the digital broadcasts to provide popular cable channels.

According to the Sezmi website, its all-in-one personalised television service is available to viewers in 36 markets across the United States. Those in the know claim that YTL Comms has taken up at least a 20% stake in Sezmi.

What content YTL Comms will provide is unclear but it will have to compete with Astro TV which has been in the business for over a decade and Astro has exclusive rights to many programmes.

Global convergence is forcing telcos and celcos to get into the broadcasting business since the lines are blurring between the two. Telecoms operators – such as AT&T and Verizon in the United States and BT, France Telecom and Telecom Italia in Europe – are also offering content over broadband.

Locally, Telekom Malaysia Bhd is offering IPTV via its high-speed broadband network and the other cellular players are also looking into ways to get into the TV content business for their users. Maxis Communications Bhd is conducting trials for IPTV and it will be much easier for the company than many others as its sister company, Astro, sits on many exclusive content rights.

YTL Corp unit to acquire Japanese resort for RM222mi

PETALING JAYA: YTL Corp Bhd’s wholly-owned subsidiary YTL Hotels & Properties Sdn Bhd has entered into an agreement to purchase a Japanese village resort for 6 billion yen (about RM222mil).

In a filing with Bursa Malaysia yesterday, YTL said the proposed acquisition would enable the group to participate in one of Japan’s finest ski resort destinations on Hokkaido island with potential to develop into a world class four season resort through luxury residential development and mountain retail development.

“The proposed acquisition is not expected to have an immediate material effect on the earnings, net assets and gearing of the group for the current financial year. However, it is expected to improve the earnings of YTL Corp in the longer term,” it added.

YTL Corp FY09 net profit up 12.1% to RM863m

KUALA LUMPUR: YTL CORPORATION BHD [] posted 12.1% increase in net profit of RM863.12 million from RM769.8 million in the previous financial year on the back of higher revenue and the inclusion of its wholly-owned PowerSeraya and acquisition of a 26.6% stake in Starhill Global REIT.

The group said on Aug 20 revenue rose 36.6% to RM8.946 billion from RM6.549 billion. Profit before taxation grew 26.1% to RM2.31 billion from RM1.83 billion last year.

However, for the fourth quarter, net profit fell to RM75.97 million from RM153.32 million a year ago. Revenue was sharply higher at RM3.59 billion from RM1.82 billion. Earnings per share was 4.67 sen compared with 10.25 sen.

YTL Corp recommended a single tier first and final dividend of 15% for FY ended June 30, 2009 and declared a share dividend distribution of one treasury share for every 50
shares held as at Sept 9.

The combined cash and share dividends result in a gross dividend yield of 3.0% for FY09 (based on the 5-day weighted average price of RM7.24 per share.

YTL Group managing director Tan Sri Francis Yeoh Sock Ping said despite tough economic conditions and ongoing volatility, both locally and internationally, the group achieved a strong set of results for FY09, with two significant acquisitions in Singapore bolstering its utilities and property investment divisions.

“The addition of wholly-owned PowerSeraya to our utilities division in March 2009 enabled us to consolidate four months’ results for the 2009 financial year.

"The acquisition of a 26.6% stake in Starhill Global REIT and 50% of the holding company of the REIT’s manager, resulted in an increase in profit due to the recognition of the fair value excess of the REIT’s identifiable assets and liabilities over the cost of the investment," he said.

Yeoh said the application of FRS 112 accounting standard arising from the abolition of industrial building allowances affecting its UK-based Wessex Water subsidiary resulted in a one-off deferred tax charge of RM442.5 million being recognised by its utilities division.

This resulted in a drop in net profit for the division but he did not expect it to have an immediate impact on cashflow. The group’s utilities operations were enhanced by the addition of PowerSeraya, Singapore’s 2nd largest generation company, with a licensed capacity of 3,100 MW and complementary multi-utility businesses.

20/8/2008