PETALING JAYA: Axiata Group Bhd swung to the black registering a net profit of RM204.09 million for the second quarter ended June 30, 2019 against a net loss of RM3.36 billion reported in the previous corresponding period, underpinned by strong operational performance across most of its markets and discontinuation of losses related to the group’s investment in India.
The group reported RM6.15 billion in revenue, a 4.9% increase from RM5.87 billion previously.
The telco has proposed to declare a dividend of 5 sen per share for the quarter under review.
According to the group’s filing with the stock exchange, earnings before interest, taxes, depreciation and amortisation (ebitda) for the Malaysian operation increased 39.1% to RM218.2 million as a result of lower operating cost.
Net profit for its infrastructure business in Malaysia fell 34.8% to RM47.8 million due to higher depreciation and amortisation as well as forex losses.
In Indonesia, it recorded a net profit of RM43.0 million in Q2 as opposed to net loss of RM28.7 million in Q2 18 on the back of higher revenue.
Axiata’s operations in Sri Lanka was affected by higher depreciation and amortisation as well as finance cost, hence resulting in a 32.6% drop in net profit to RM47.9 million.
In Bangladesh, it registered a net loss of RM15.8 million for the quarter due to higher tax recorded as a result of changes in tax law for minimum tax rate from 0.75% to 2.0% on revenue effective January 1, 2018.
Subsequently, its Nepal operation’s net profit sank 18.4% to RM154.0 million due to changes in telecommunication services charge in Nepal introduced in July 2018.
In Cambodia, group reported a 13.3% increase in net profit to RM73.9 million increase, attributed to higher top line despite being partly offset by higher depreciation and amortisation and tax expense.
For the first half of the year, Axiata’s net profit stood at RM913.15 million against a net loss of RM3.5 billion in the same period last year.
Its revenue came in at RM12.1 billion, a 4.2% improvement from RM11.62 billion.
Barring any unforeseen circumstances, regulatory and external disruptions, Axiata said the group is likely to exceed its headline key performance indicators (KPIs) for ebitda growth and return on invested capital, which were initially targeted to range between 5% to 8% and 5.2% to 5.6% respectively for its financial year ending December 31, 2019.
“The year’s headline KPI for revenue growth is expected to remain in line with the targeted range of 3% to 4%, whilst capex for 2019 is likely to be below guidance of RM6.8 billion on the back of ongoing capex rationalisation.”
At the midday break, Axiata’s share price gained 2 sen to RM5.02 on 610,700 shares done.
