Axiata reports net income increase as OpCos increase turnover

31 Aug 2012

Malaysian telecoms group Axiata has released its financial results for the three months ended 30 June 2012, revealing a minor increase in net profit compared to the same period a year earlier, on improved contributions from domestic activities, which offset foreign exchange losses at its Indonesian and Sri Lankan subsidiaries. In the second fiscal quarter of 2012 Axiata posted a net income of MYR666.6 million (USD214 million), up from MYR663.1 million a year earlier, as group revenue increased by 9.3% to MYR4.43 billion. Earnings before interest, tax, depreciation and amortisation (EBITDA) meanwhile grew by 9.2% in 2Q12 to MYR1.92 billion, an increase which Axiata attributed partly to ‘ongoing strategic cost initiative programmes’. The EBITDA margin however remained flat at 43.5%, mainly as a result of aggressive network rollout costs in Indonesia.

In operational terms, at the end of June 2012 Axiata’s group-wide subscriber base stood at 213.6 million, up 22% year-on-year. The strongest quarter-on-quarter customer growth reported at the company’s Bangladeshi and Indian subsidiaries, which increased by 9% and 4% respectively.

Commenting on the quarterly performance, Dato’ Sri Jamaludin Ibrahim, Axiata’s president and CEO, noted: ‘I am very happy with the continued strong results. We have held firm in our strategy and despite challenges we have continued to see strong sequential quarterly improvements across all major operating companies.’

Malaysia, Axiata