PETALING JAYA: Axiata Group Bhd saw a 9.4% decrease in its net profit to RM119.7 million for the third quarter ended Sept 30 from RM132.1 million, due to the absence of M1 Limited’s contribution following its disposal, as well as higher taxes in Bangladesh.
However revenue went up 3.5% to RM6.2 billion from RM6 billion last year on better performance by most of its operating companies (opcos, the group said in a statement today.
Axiata strengthened its balance sheet with gross debt/EBITDA at 1.9 times compared to 2.3times in the same quarter last year. The group also pared down its debts by RM2.2 billion during the quarter, and its cash balance stood at RM5 billion.
Axiata chairman Tan Sri Ghazzali Sheikh Abdul Khalid said the group’s financial performance is a testimony to its disciplined and rigorous execution of operational and cost excellence initiatives.
“As Axiata transforms to realise its digital vision, staying focused on profit and cash in the short-term to strengthen our financial footing will be a key enabler for sustainable growth. In this regard, the Board is encouraged by the achievements in this third quarter,” he said.
For the nine month period, Axiata went back to black with a net profit of RM1.03 billion from a net loss of RM3.4 billion previously, attributed to better underlying performance across most opcos, foreign exchange gain, discontinuation of losses related to its investment in India, gain on disposal of non-strategic investments and disposal of investment rights in India.
Revenue grew 4% to RM18.3 billion compared to RM17.6 billion last year as a result of strong data revenue growth.
President and CEO Tan Sri Jamaludin Ibrahim said the group’s performance shows it has successfully ‘shifted gear’ these last nine months to take the lead among its peers in the region.
““We have been working hard to step up on operational excellence across the group and maintain the gruelling momentum since unveiling our 2019-2020 plans. Thus far, our main concern in most of our markets is in regulatory risks.
“Given the current trajectory and barring unforeseen circumstances, we are likely to exceed targeted FY19 headline KPIs for EBITDA growth of 5%-8% and ROIC of 5.2%-5.6%. Revenue growth at 3%-4% is likely to be below,” he added.
