KUALA LUMPUR (Aug 27): Axiata Group Bhd's net profit more than tripled to RM227.76 million for the second quarter ended June 30, 2021 (2QFY21), from RM75.6 million in 1QFY21, as most of its geographical segments posted better results.
Axiata chairman Tan Sri Ghazzali Sheikh Abdul Khalid commented that the Celcom-Digi merger is making steady progress in the ongoing regulatory approval stage, following the successful conclusion of due diligence and signing of transaction agreements.
The telco's quarterly revenue, however, grew at a much slower pace of 5.5% to RM6.39 billion, from RM6.06 billion in the preceding quarter.
Year-on-year, its net profit increased 185% from RM80.02 million in the previous corresponding quarter last year, while revenue increased 10% from RM5.79 billion.
The group declared an interim dividend of four sen per share for the quarter under review.
The improved quarter-on-quarter (q-o-q) performance was attributed to higher top lines, lower finance costs amid less borrowings, and lower taxes during the quarter.
By geographical segments, Axiata said its operations in Malaysia posted a 12% increase in revenue to RM1.63 billion amid growth in the prepaid business and higher device sales, while profit grew 12%, contributed by its cost optimisation initiatives.
However, this was slightly dampened by the accelerated depreciation of 3G assets, which amounted to RM51.5 million.
For Indonesia, revenue increased 1.1% to RM1.93 billion while net profit increased 87% to RM122.8 million due to lower depreciation and amortisation and taxes.
In Bangladesh, its revenue grew 9.8% to RM986.6 million, mainly due to the increase in active subscribers and growth of its prepaid business, although net profit declined 23% amid higher operating costs and accelerated depreciation of 3G assets.
The group's operations in Sri Lanka, Nepal and Cambodia all posted growth in revenue and net profit during the quarter under review.
Its infrastructure segment saw a 2.4% increase in revenue to RM480.4 million, while net profit swelled 56% to RM89.9 million, backed by lower operating costs, lower depreciation and amortisation, as well as foreign exchange gains.
"We are pleased to have closed the second quarter with robust growth across all metrics despite continued challenges in the business environment due to extended lockdowns.
"This recovery period puts us in more favourable territory, as we execute measures to add capacity and modernise networks as well as support digital inclusion and transformation across the region," said Axiata president and group chief executive officer Datuk Izzaddin Idris in a statement.
For the first half of its financial year, its net profit grew nearly 32% to RM353.32 million from RM268.12 million, while its cumulative revenue increased 5.24% to RM12.45 billion from RM11.83 billion.
The regional telco said all of its operating companies (OpCos) excluding Ncell were ahead of pre-pandemic levels in 2020.
The better performance for the cumulative period was attributed to contributions from Celcom Axiata Bhd and Axiata Digital Services Sdn Bhd, offset by forex translation impact due to the strengthening of the ringgit against OpCo currencies.
"Having endured a steep learning curve in mitigating pandemic shocks in 2020, we have since shored up important learnings and strengthened our ability to weather uncertainties. The utilitarian nature of the service that our industry delivers to ensure connectivity and digital enablement requires agility and operational excellence.
"In addition to directly assisting our communities hit hard by economic shutdown throughout the past year, we have also ploughed back investments that serve to benefit customers and micro enterprises through improved network capabilities and digital solutions," said its chairman Ghazzali.