Axiata 1Q16 revenues up 5.4% on Sri Lanka, Cambodia, Indonesia contributions

25 May 2016

Malaysia’s Axiata has published its unaudited results for the first quarter of 2016, revealing what it called ‘a mixed performance for the quarter, amidst heightened competitive market pressures’.

Total turnover in the three months ended 31 March 2016 was MYR5.01 billion (USD1.19 billion), representing a year-on-year increase of 5.4%, while Axiata noted that despite domestic unit Celcom facing a challenging first quarter, ‘almost all’ of its subsidiaries registered improved year-on-year revenue growth. Sri Lanka’s Dialog and Cambodia-based Smart were both highlighted as having performed ‘exceptionally well’, while XL of Indonesia was said to have reported stronger growth as a result of its transformational agenda.

EBITDA in the period under review was up by 7.7% at MYR1.88 billion, with such growth attributed mainly to the easing of expenses, while the EBITDA margin in 1Q16 was 37.4%, its highest level in seven quarters. Profit after taxation and minority interests (PATAMI) meanwhile totalled MYR368 million in the opening quarter of 2016, down 37% y-o-y, impacted by higher net finance costs and increased depreciation costs arising from growth driven capital expenditure as well as lower contribution from indirectly held associates.

Commenting on the company’s performance, Axiata president and CEO Dato’ Sri Jamaludin Ibrahim noted: ‘The first quarter showed mixed results with XL, Dialog and Smart performing exceptionally well while Celcom’s performance impacted the Group’s results. However, I am pleased to note there are many positive signs; Celcom has been aggressively rolling out more LTE sites and a number of competitive and exciting data products and services over the last two months. I am confident with these initiatives in place, Celcom will be back on track to finish the year respectably.’

Malaysia, Axiata