Thursday 28 Mar 2024
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KUALA LUMPUR (Aug 27): Axiata Group Bhd’s net profit for the second quarter ended June 30 (2QYF20) fell 63.72% to RM80.02 million or 0.9 sen per share, from RM220.56 million or 2.4 sen per share a year earlier, dragged by weaker performance in Malaysia and Nepal and on a smaller one-off gain on disposal.

Amid the weak quarter, Axiata declared a tax-exempt dividend of two sen per share, down from five sen in 2QFY19.

The mobile network and telco tower operator posted a one-off gain on sale and leaseback of telco towers of RM30.7 million, as opposed to RM96.1 million in 2QFY19 on disposal of rights of investment in India, it said.

Quarterly revenue slid 5.87% to RM5.79 billion, from RM6.15 billion, as only the tower business and the Indonesian segment provided higher contributions, while contributions from other markets fell.

Geographically, Axiata’s operations in Bangladesh and Cambodia grew in profit on lower operating costs, despite lower revenue. Meanwhile, the Sri Lanka business turned weaker but buoyed by forex gains, while its Indonesian business grew on strong data growth.

Malaysia and Nepal underperformed on weaker top line, and due to the offer of freebies to customers during the Covid-19 lockdowns. In the tower business, the group recorded revenue growth, as well as lower operating costs.

For the six-month period ended June 30 (6MFY20), Axiata’s net profit fell 71.65% to RM268.12 million or 2.9 sen per share, from RM945.72 million or 10.4 sen per share a year ago.

This was despite revenue retreating just 2.26% to RM11.83 billion, from RM12.1 billion. The group attributed the steeper bottom line decline to higher depreciation and amortisation, a swing from forex gain to loss, and lower one-off gains.

Axiata’s share price closed up two sen or 0.64% to RM3.13 today, valuing the group at RM28.7 billion. Year-to-date, the counter has fallen by 24.4%. 

Edited by S Kanagaraju

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