KUALA LUMPUR (Nov 23): Telecommunications group Axiata Group Bhd has registered a 45% fall in net profit to RM132.07 million in the third quarter ended Sept 30, 2018 (3QFY18) against RM238.53 million a year ago, mainly due to higher unrealised forex loss on US dollar-denominated loans, as well as higher finance costs. 

Even so, it was the first quarterly net profit for the year.  

Earnings per share for the quarter dropped to 1.5 sen, from 2.7 sen in 3QFY17.  

Revenue slipped 3.2% to RM6.003 billion from RM6.202 billion as the ringgit strengthened against all regional currencies, leading to an adverse forex translation impact on the group’s headline performance. 

Its Malaysian operations recorded the highest improvement in revenue, increasing 9.6% to RM1.813 billion, driven by growth in prepaid revenue. For its infrastructure division in Malaysia, the segment registered a 10% growth to RM402.4 million in revenue contribution.  

For the cumulative nine months, Axiata incurred a net loss of RM3.373 billion compared with a net profit of RM884.76 million in the same period last year, on slightly lower revenues of RM17.619 billion (RM18.141 billion before).  

Axiata said it declined significantly to a loss position, as a result of a one-off loss on derecognition of the group’s investment in India amounting to RM3.3 billion. 

In a statement, Axiata president and group chief executive officer Tan Sri Jamaludin Ibrahim said it has been a challenging year for the group, as it was affected mainly by regional geopolitics, aggressive market conditions, as well the ringgit and regional currency depreciation.  

"Our loans in US dollar were affected, whilst OpCo (operating company) currencies depreciating faster than the ringgit, impacted dividend payments to the group. 

"Despite these external challenges beyond our control, the group continued to demonstrate steady underlying business performance. In fact, on a year-to-date basis, all the six OpCos performed the best in their respective markets in terms of revenue growth. We are confident of riding the waves and broadly hitting our headline KPIs for the year," he said. 

Looking ahead, Jamaludin said Axiata’s operating companies will continue to provide confidence to the group, with most companies performing better than market, in terms of revenue and EBITDA. 

"But we need to continue to work harder on cost and capex management."  

In a separate statement, Axiata announced the appointment of Khoo Gaik Bee as the group's independent non-executive director. Khoo has 37-years of experience, mainly in resource management, and has served at several international and Malaysian corporates, including Digital Equipment Malaysia, ICI Paints (M) Sdn Bhd, Sunway Group of Companies, and Arthur Young & Co, among others, before stepping down as executive director and Human Resource Director of Guinness Anchor Bhd in 2006.   

Axiata closed 2 sen down or 0.58% to RM3.41, valuing the company at RM30.932 billion.