KUALA LUMPUR (Nov 24): Axiata Group Bhd reported a 71% fall in its third quarter net profit at RM256.56 million, from RM891.39 million a year earlier, on higher operating cost. Weaker financials from its Malaysia and Indonesia units also contributed to the group's lower net profit.

In a statement to Bursa Malaysia today, mobile-telecommunication network provider Axiata said revenue however rose to RM5.46 billion in the third quarter ended Sept 30, 2016 (3QFY16), from RM5.06 billion. Axiata said operating cost rose 5.1% to RM3.37 billion, from RM3.2 billion.
 
"Group revenue increased by 7.7% to RM5,457.0 million in the current quarter, from RM5,065.1 million recorded in [the] third quarter of 2015, primarily due to contribution of revenue from Nepal in 3QFY16 and higher revenues in Sri Lanka, Bangladesh and Cambodia, coupled with a positive translation impact.

"Contribution of Nepal, as well as higher profits recorded by Sri Lanka ,Bangladesh and Cambodia had a positive impact on PAT (profit after tax), which was partly offset by operations in Malaysia and Indonesia that registered lower profits due to intense competition in respective markets and foreign currency fluctuation," Axiata said.

Cumulative 9MFY16 net profit fell to RM813.75 million, from RM2.09 billion a year earlier. Revenue was however higher at RM15.78 billion, versus RM14.52 billion. 

At 12:30 p.m. today, Axiata shares fell five sen to RM4.43, for a market value of RM39.74 billion. The stock saw some two million shares traded.