Malaysian mobile phone firm TM International posted a 38% fall in second-quarter net profit, partly due to higher interest costs after it took out a new loan, a Reuters report said.

TM International, which was listed as a separate company earlier this year after state-controlled Telekom Malaysia spun off the mobile phone unit, said it earned 367 million ringgit ($108 million) in the three months to June 30, the Reuters report added.

The firm said it had earned 588 million ringgit ($173.3 million) in the corresponding period last year on a proforma basis.

The Reuters report further said falls in after-tax profit in the quarter were heightened by one-off gains made in the corresponding quarter last year, which includes 194 million ringgit ($57.1 million) arising from disposal of shares in its Sri Lankan unit Dialog and 18 million ringgit ($5.3 million) from the dilution of shares in India's Spice Telecom, the firm said.

Second-quarter profits this year were also pressured by 44 million ringgit ($12.9 million) in interest costs arising from a loan which followed the Telekom Malaysia demerger.

TM International would control around a fifth of Indian mobile operator Idea Cellular after it completes a takeover of a smaller Indian firm in which it holds a stake.

Source:telecomasia.net