Friday 29 Mar 2024
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KUALA LUMPUR (Feb 25): Axiata Group Bhd reported a 3% rise in fourth quarter net profit to RM594.93 million from a year earlier, as the mobile telecommunication network provider posted higher revenue from most of its global operating units.
 
Significantly higher foreign exchange (forex) gains and lower finance cost also supported profit growth, Axiata (fundamental: 0.85; valuation: 0.9) told Bursa Malaysia today.

Axiata said net profit rose to RM594.93 million in the fourth quarter ended December 31, 2014 (4QFY14), from RM575.63 million. Revenue was higher at RM4.81 billion versus RM4.51 billion previously.

"Group revenue increased by 6.7% to RM4,813.4 million in the current quarter (“Q4’14”) from RM4,512.3 million recorded in the fourth quarter of 2013 (“Q4’13”), on the back of higher revenue contribution from all key operating companies except Malaysia.

"Operating costs of the group increased by 8.7% to RM3,046.0 million in Q4’14, from RM2,802.4 million in Q4’13, mainly due to impact of Axis consolidation in Indonesia and higher operating costs in Bangladesh, in line with higher revenue," Axiata said.

During 4QFY14, Axiata registered forex gains of RM99.56 million, compared to RM8.13 million; while finance cost fell to RM256.95 million, from RM310.23 million, according to the group.

Axiata said Malaysian revenue fell 3.1% on lower voice and SMS income. Data revenue, however, rose 34.4%.

Group full-year net profit declined to RM2.35 billion, from RM2.55 billion a year earlier; while revenue was higher at RM18.71 billion, versus RM18.37 billion.

For 4QFY14, Axiata plans to pay a dividend of 14 sen a share, bringing full-year dividends to 22 sen.

Today, Axiata shares rose seven sen or 1% to RM7.19, for a market capitalisation of RM61.73 billion. The stock had gained 2% this year, compared to the FBM KLCI's 3% rise.

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)

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