KUALA LUMPUR (Aug 26): Axiata Group Bhd posted a net loss of RM106.38 million for the second quarter ended June 30, 2022 (2QFY22), due to significant foreign exchange (forex) losses contributed by mobile operations in Sri Lanka.
This is the second consecutive quarter that Axiata has been in the red. The quarterly loss was wider compared with RM42.97 million for the preceding quarter ended March 31, 2022.
The telecommunications company (telco) incurred forex losses of RM475.7 million for the quarter under review, of which RM370.5 million were unrealised losses due to exposure to US dollar-denominated loans and liabilities, according to its stock exchange filing on Friday (Aug 26).
For the second quarter a year ago, the group made a net profit of RM277.76 million.
Despite posting a net loss for 2QFY22, Axiata's revenue grew 4.9% year-on-year to RM6.7 billion, from RM6.39 billion a year ago, driven by revenue growth in all geographical segments except for Sri Lanka.
For the first half ended June 30, 2022 (1HFY22), the group incurred a net loss of RM149.35 million, versus a net profit of RM353.32 million a year ago, while revenue rose 5.8% to RM13.17 billion from RM12.45 billion.
The telco did not declare any dividend for 1HFY22, compared to four sen per share a year ago.
Nonetheless, the group maintained its headline key performance indicators (KPIs) of mid-single-digit growth for revenue and high-single-digit growth for earnings before interest and tax.
“The board of directors is confident that the group is likely to exceed the headline KPIs based on operational performance. Nonetheless, currency devaluation and inflation will have an unfavourable impact on the reported PATAMI (profit after tax and minority interest) of the group in 2022,” it said.
“While operational performance in 1HFY22 remained encouraging, the board of directors recognises the current global macroeconomic risks, particularly in frontier markets such as Sri Lanka, Bangladesh and Nepal, and proactive measures are being taken to manage these risks,” it added.
Axiata’s share price went up two sen to RM3.10 at the noon market break, giving the group a market capitalisation of RM28.45 billion. The stock has slid 25% year-to-date.