Mixed 2014 results for Axiata

25 Feb 2015

Malaysian telecoms group Axiata has reported its financial results for the twelve months ended 31 December 2014, with the company noting that while it had seen ‘stellar’ results from most of its operating companies, its domestic unit Celcom’s ‘previous exemplary track record was marred partly due to IT transformation’.

On the back of what it termed the ‘diligent execution of strategies’ by the bulk of its subsidiaries, Axiata saw modest growth in revenue for the fiscal year under review, with total turnover up by 1.9% year-on-year to MYR18.712 billion (USD5.72 billion); it did, however, highlight the fact that at constant currency levels growth was, in fact, up by 4.4% against FY13. Notable performers in terms of revenues were the group’s Cambodian and Indonesian units, which saw y-o-y growth of 36% and 10%, respectively. Celcom fared less well though, with turnover falling to MYR7.742 billion in 2014 to MYR8.025 million a year earlier.

Group EBITDA meanwhile declined by 3.7% y-o-y to MYR6.999 billion in FY2014, while profit after taxation and minority interests (PATAMI) stood at MYR2.349 billion in the twelve-month period, representing a 7.9% decline, which was attributed to Celcom’s IT transformation related issues, cost associated with the integration of Axis in Indonesia, and the weakening currency in that country. Capital expenditure in 2014 totalled MYR4.017 billion, up by just 0.6% compared to the previous year.

Commenting on the group’s performance, Axiata Chairman Tan Sri Dato’ Azman Hj. Mokhtar said: ‘2014 was a challenging year, especially at Celcom. Added to this the Group, as with most regional companies, was impacted by adverse forex movements. The Group has nonetheless delivered good dividends as a result of our overall healthy profitability. This is a reflection of prudent cash management as well as a diverse portfolio.’

Malaysia, Axiata, Celcom Axiata