Axiata reveals net profit increase in 2Q11

23 Aug 2011

Malaysian mobile group Axiata has released its financial results for the three months ended 30 June 2011, revealing a 15% year-on-year increase in net profit for the period. The group posted profit after taxation and minority interests (PATAMI) of MYR663 million (USD222 million), up from MYR576 million in the same period a year earlier. Despite increased competition, foreign exchange fluctuations and ‘a general softening of the market’, turnover for the three-month period stood at MYR4.05 billion, representing a 5% y-o-y increase. Bangladesh-based Robi was singled out as one the better performers, with revenue at the unit rising by 21.9% compared to the same quarter a year earlier, mainly on the back of higher turnover from pre-paid customers and interconnection, which rose by 20% and 44% respectively. Axiata meanwhile noted that at constant currency levels total revenue would have risen by 7% against 2Q10. Earnings before interest, tax, depreciation and amortisation (EBITDA) for the group’s second fiscal quarter of 2011 were MYR1.76 billion, down from MYR1.82 billion in 2Q 2010, which the group attributed to the strengthening of the Malaysian currency and higher costs related to data.

In operational terms, at the end of June 2011 Axiata’s subscriber base totalled 175.7 million, representing a 27% increase against the number of customers the group had at the same date a year earlier. Indian cellco Idea Cellular remains the outfit’s largest subsidiary in terms of customers, reporting a subscriber base of 95.1 million at 30 June 2011, up from 68.9 million, while Indonesia’s XL was the next largest with 38.9 million customers; while this was up 10.5% y-o-y, it was down from the peak of 40.4 million reported at end-December 2010.

Malaysia, Axiata