Thursday 28 Mar 2024
By
main news image

KUALA LUMPUR (Nov 28): Axiata Group Bhd's net profit for the third quarter ended Sept 30, 2019 (3QFY19) dropped 9.4% to RM119.7 million from RM132.07 million a year ago on the absence of contributions from Singapore telco M1 Ltd following its disposal as well as higher taxes in Bangladesh.

The lower net profit is despite 3.5% higher revenue of RM6.21 billion achieved during the quarter under review, from RM6 billion a year ago, according to a Bursa Malaysia filing today.

The higher revenue is thanks to better performance by most of its operating companies, except for mobile operations in Malaysia, Sri Lanka and Nepal, it said.

Earnings per share also declined in tandem with net profit, to 1.3 sen from 1.5 sen a year ago.

For the first nine months ended Sept 30, 2019 (9MFY19), Axiata posted a net profit of RM1.03 billion compared with a net loss of RM3.37 billion in the corresponding period last year, against 3.96% higher revenue of RM18.32 billion from RM17.62 billion.

In a statement accompanying the results, the group attributed its higher revenue to strong data revenue growth and its return to profitability to better underlying performance across most of its operating companies, foreign exchange gain, discontinuation of losses related to its investment in India, gain on disposal of non-strategic investments and disposal of investment rights in the country, which reflected its portfolio rebalancing strategy.

"The strong set of financial results recorded by Axiata this quarter is a testimony to the group's disciplined and rigorous execution of operational and cost excellence initiatives aimed at steadying the group and mitigating our geography's complex, uncertain and competitive business and regulatory environment," said its chairman Tan Sri Ghazzali Sheikh Abdul Khalid.

"As Axiata transforms to realise its digital vision, staying focused on profit and cash in the short term to strengthen our financial footing will be a key enabler for sustainable growth. In this regard, the board is encouraged by the achievements in this third quarter," he added.

Meanwhile, Axiata president and group chief executive officer Tan Sri Jamaludin Ibrahim said the group's performance showed that it had successfully "shifted gear" in the first nine months of the year to overtake its regional peers.

"Even as we aimed for profitability and cash generation, we did not sacrifice topline growth.

"We have been working hard to step up on operational excellence across the group and maintain the gruelling momentum since unveiling our 2019-2020 plans. Thus far, our main concern in most of our markets is in regulatory risks.

"Given the current trajectory and barring unforeseen circumstances, we are likely to exceed targeted FY19 Headline KPIs for earnings before interest, taxes, depreciation and amortisation (EBITDA) growth of 5%-8% and return on invested capital of 5.2%-5.6%," he said.

However, he noted that revenue growth is likely to be below 3% to 4%.

At the afternoon break, shares of Axiata were unchanged at RM4.26, giving it a market capitalisation of RM39.04 billion.

      Print
      Text Size
      Share