Axiata reveals net profit growth in 4Q/FY 2011

23 Feb 2012

Malaysian mobile group Axiata has posted a profit for the last three months of 2011, having reported a net loss in the same period a year earlier, when it recorded an impairment loss of MYR1.1 billion (USD356 million) on its investment in Indian unit Idea Cellular. The group has released its financial results for the three- and twelve-month periods ended 31 December 2011, reporting a net profit of MYR544.59 million in its fourth quarter, up from a loss of MYR367.04 million in 4Q10. Full year net income for 2011, meanwhile, stood at MYR2.35 billion, up 32.5% year-on-year, with Axiata in particular noting solid profit increases at its domestic mobile unit, Celcom Axiata, which reported 11% y-o-y profit growth.

Operating revenue for the group in the last three months of 2011 was MYR4.26 billion, up 6.1% compared to the year-ago quarter, while turnover in FY2011 reached MYR16.45 billion, representing a 5.3% rise against the previous fiscal year. Earnings before interest, tax, depreciation and amortisation (EBITDA) for the twelve-month period was MYR7.12 billion, an increase of less than one percentage point compared to the year earlier.

Axiata’s total subscriber base rose to 199.1 million at end-2011, up from 159.7 million at end-2010, with Idea Cellular remaining its largest unit in terms of customers, accounting for 106.4 million of the total, up from 81.8 million a year earlier. Robi Axiata (Bangladesh) and XL Axiata (Indonesia) were the group’s next largest units, counting 46.4 million (up from 40.4 million) and 23.3 million (up from 16.7 million) wireless accesses respectively.

Commenting on the results, Axiata’s president and group CEO Dato’ Sri Jamaludin Ibrahim, noted: ‘Despite the challenges faced in the first half, such as slower than expected industry growth, investment in data and changes in revenue mix as well as the strengthening Ringgit, the Group ended the year in a position of strength, reflecting our ability to nimbly navigate our way through increasingly difficult market conditions. Our OpCos have performed very well across key metrics, outperforming the industry in most of our markets. We are particularly pleased with XL’s and Dialog’s all-round excellent performance, Celcom’s profitability as well s Robi’s revenue growth. Our performance resulted in strong balance sheets, not only at Group level but all major OpCos.’

Malaysia, Axiata