Friday 29 Mar 2024
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KUALA LUMPUR (Aug 30): Axiata Group Bhd's net profit more than doubled to RM407.21 million in the second quarter ended June 30, 2017 (2QFY17) from RM188.93 million a year ago, largely due to improved profit contribution from almost all operating countries.

In 2QFY16, the group's profit was also dampened by foreign exchange translation loss arising from a weaker ringgit against the US dollar.

Earnings per share rose to 4.5 sen in 2QFY17 from 2.1 sen in 2QFY16.

In a filing with Bursa Malaysia today, Axiata said the improved quarterly results were achieved despite its share of results of associates and joint ventures reported a loss of RM95.6 million in 2QFY17 compared with a profit of RM19.1 million a year ago, mainly due to a RM109.4 million loss in India as the overall India market continues to be impacted by the new entrant’s aggressive price competition and service.

The group also reported its highest quarterly revenue to date of RM6.06 billion in 2QFY17, up 14.1% from RM5.31 billion in 2QFY16.

Strong performance in revenue was fuelled by data growth with data revenue now contributing 44.1% of service revenue compared with 32.3% in 2QFY16.

The group also declared an interim dividend of 5 sen per share for the financial year ending Dec 31, 2017 (FY17), of which details of entitlement and payment dates will be announced in due course.

For the cumulative six months (1HFY17), Axiata reported a 16% increase in net profit to RM646.22 million from RM557.19 million in 1HFY16 on improved earnings before interest, tax, depreciation and amortisation (Ebitda) and forex translation gains.

Revenue for 1HFY17 grew 15.7% to RM11.94 billion from RM10.32 billion in 1HFY16, a result of contributions from all major operating companies except for the operation in Malaysia. Revenue for its Malaysian operations contracted 3.4% to RM3.22 billion due to a drop in legacy voice and SMS revenue, which had resulted in its Ebitda contracting by 8.3%.

In a separate statement today, Axiata president and group chief executive officer Tan Sri Jamaludin Ibrahim said the group’s performance has been in line with guidance, and the group is dedicated on meeting its headline key performance indicators for 2017.

He added that while there are encouraging signs at Celcom [Malaysia Bhd] and [PT] XL [Axiata Tbk], the group remains cognisant of significant challenges ahead, especially with heightening competition in most markets.

“In our ongoing and focused efforts to be a clear number one in 4G and data leadership in selected key markets and strategic geographically areas within our markets, we have raised our 2017 capital expenditure guidance to RM7.1 billion from RM6.6 billion.

"We will also organically and inorganically continue to expand edotco Group Sdn Bhd’s business to be in the world’s top 10 tower company,” said Jamaludin.

Axiata shares closed down 3 sen or 0.62% to RM4.82 at noon market today, with 249,900 shares changing hands. Its market capitalisation stood at RM44.09 billion.
 

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