Axiata net profit down 37% in first quarter

PETALING JAYA: Axiata Group Bhd’s net profit for the first quarter ended March 31, 2016 fell 37% to RM368.26 million from RM584.84 million a year ago, impacted by higher net finance costs and increased depreciation costs arising from growth driven capital expenditure, as well as lower contribution from indirectly held associates.
Revenue grew 5.4% to RM5.0 billion compared with RM4.75 billion in the previous corresponding period, while earnings before interest, tax, depreciation and amortisation (ebitda) was up by 7.7% to RM1.9 billion mainly from the easing of expenses.
Ebitda margin at 37.4% was its highest in the last seven quarters, contributed mainly by XL, Dialog and Smart.
Axiata president and group CEO Datuk Seri Jamaludin Ibrahim said the first quarter showed mixed results with XL, Dialog and Smart performing well while Celcom’s performance impacted the group’s results.
“With Ncell being consolidated from April 12, 2016, we expect to see immediate accretion to group revenue, ebitda, and profit after taxation and minority interests,” he said in a statement.