KUALA LUMPUR (Aug 25): Axiata Group Bhd's net profit fell 69% to RM188.93 million in the second quarter ended June 30, 2016 (2QFY16) from a year earlier on higher finance cost and foreign exchange losses.

Mobile telecommunication network operator Axiata told Bursa Malaysia today 2QFY16 net profit dropped from RM610.76 million. Revenue was higher at RM5.31 billion compared to RM4.71 billion.

Axiata said, "The group recorded higher depreciation and amortisation charges mainly driven by accelerated depreciation in Indonesia as well as amortisation of intangible assets arising from acquisition of Nepal operation."

"In addition, PAT (profit after tax) was also impacted by higher net finance costs, net foreign exchange losses and lower share of profit from associates," Axiata said.

Despite the lower 2QFY16 net profit, the group said it planned to pay a dividend of five sen a share for the quarter in review.

For the six-month period (1HFY16), Axiata said net profit fell to RM557.19 million from RM1.2 billion a year earlier. Revenue rose to RM10.32 billion from RM9.46 billion.

At 12:30pm today, Axiata shares rose six sen or 1.1% to RM5.73 for a market capitalisation of RM50.61 billion. The stock saw some three million shares traded.