Thursday 28 Mar 2024
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KUALA LUMPUR: Axiata Group Bhd posted a 12% decline in third- quarter net profit from a year earlier, as the mobile telecommunication network provider registered weaker financials at its Malaysia and Indonesia operations.

In a statement to Bursa Malaysia yesterday, Axiata said net profit fell to RM631.03 million for the third quarter ended September (3QFY14) from RM715.05 million a year ago. Revenue fell to RM4.65 billion from RM4.75 billion in 3QFY13, mainly dragged down by its Malaysia and Indonesia units’ lower revenue contributions.

“Malaysia’s gross revenue declined by 4.3% in 3QFY14, driven by a decline in voice and SMS revenue by 6.9% and 30.6% respectively. Net profit declined by 31% to RM409.6 million, due to lower earnings before interest, taxes, depreciation, and amortisation (Ebitda) and higher taxation in 3QFY14,” Axiata said.

In Indonesia, Axiata noted foreign exchange (forex) losses from its unit, PT XL Axiata Tbk, was a crucial factor that drove group bottom line lower. The forex losses were due to a weaker rupiah.

“Gross revenue of Indonesia decreased by 4.5%, mainly due to translation impact of a weaker rupiah against the ringgit. Indonesia recorded loss after tax of RM128.4 million, mainly due to lower Ebitda and higher depreciation and amortisation driven by Axis consolidation and weaker rupiah against the ringgit,” Axiata said.

In the cumulative nine-month period, Axiata registered a lower net profit of RM1.75 billion, down 11% from RM1.97 billion a year ago. This came on the back of higher revenue at RM13.9 billion versus RM13.86 billion.

Axiata president and group chief executive officer Datuk Seri Jamaludin Ibrahim (pic) said in a statement that he is confident of seeing a “turnaround” in performance in the final quarter of the year. Jamaludin said Axiata expects to regain customers’ and dealers’ confidence with the group’s enhanced ability to expedite the launch of new products and deliver better customer service.

“Moving forward, I am pleased to note that the two-year IT transformation project at Celcom has now been completed with the issues resolved. Data remains a priority, given the speed of growth, and is expected to grow faster across Axiata markets, facilitated by higher smartphone adoption,” Jamaludin noted.

 

This article first appeared in The Edge Financial Daily, on November 25, 2014.

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