KUALA LUMPUR (Feb 22): Axiata Group Bhd returned to the black in the fourth quarter ended Dec 31, 2017 (4QFY17), posting a net profit of RM24.73 million compared to a net loss of RM309.49 million a year ago, largely due to improved earnings before interest, tax, depreciation and amortisation (Ebitda) and foreign exchange (forex) gains.

Earnings per share stood at 0.3 sen compared to a loss per share of 3.5 sen in 4QFY16.

Quarterly revenue climbed 8.15% to RM6.26 billion in 4QFY17 from RM5.79 billion in 4QFY16 on strong growth from Indonesia, Malaysia and Bangladesh, which are Axiata’s key mobile operating entities.

In a filing with Bursa Malaysia today, Axiata said the revenue growth was also fuelled by continued traction in the data revenue segment that accounts for 49.2% of service revenue compared with 37.9% in 4QFY16, while Ebitda was driven by strong hikes in revenue growth and cost optimisation drive across the group.

Axiata also declared a final dividend of 3.5 sen for the financial year ended Dec 31, 2017 (FY17), bringing a total payout of 8.5 sen for the year compared with eight sen in FY16.

For the full FY17, the group's net profit expanded 80.36% to RM909.48 million from RM504.25 million, while revenue rose 13.16% to RM24.4 billion from RM21.57 billion in FY16.

In a separate statement, Axiata chairman Tan Sri Wira Azman said Axiata met its targeted headline key performance index (KPI) for 2017 and with improved overall results, could declare a higher full year dividend, which translates to a payout ratio of 64% compared with 50% in 2016.

Axiata president and group chief executive officer Tan Sri Jamaludin Ibrahim said the group was determined to make FY17 its best performing year after a challenging 2016.

“We met all the KPIs for FY17, recorded the highest revenue and EBITDA in our history with all our operating companies (Opco) and businesses performing strongly. In fact, all Opcos performed better than industry while some performed the best in their respective markets.

“We also kicked off our biggest ever cost optimisation programme. With RM800 million in opex and capex saving targeted for 2017 while working towards a RM1.5 billion goal in 2018 and 2019. The group successfully delivered RM1.3 billion in savings in 2017,” he said.

It two largest operations, Celcom Axiata Bhd and PT XL Axiata Tbk, also delivered as planned, Jamaludin said, adding that Celcom’s turnaround was the key focus for 2017 and that its improvements on all indicators demonstrate that a firm turnaround is on track.

On XL’s transformation agenda, tangible results showed in its dual brand strategy and network expansion but there is more work to do, he added.

Moving forward, Axiata expects its core mobile operations to perform well, Jamaludin said, adding that the proposed merger of Idea Cellular Ltd and Vodafone Group Plc in India will make it the largest telco in India and one of the largest in the world, signifying a new era for all.

“In our newer business portfolios, the completion of edotco Group Sdn Bhd’s proposed acquisition in Pakistan will see material impact with an immediate profit accretion while our investments in key digital businesses such as fintech and enterprise/Internet of Things is expected to make significant inroads during the year,” he added.

Axiata shares closed down one sen or 0.18% at RM5.67 today, for a market capitalisation of RM51.3 billion.