Malaysian telecoms group Axiata has reported what it called a ‘strong’ set of financial results for the first six months of the year, recording growth in revenues, EBITDA and net profit for the period under review.
In the second quarter of 2017 Axiata generated a total turnover of MYR6.06 billion (USD1.4 billion), up more than 14% year-on-year, and its highest ever quarterly figure. In the year to date, meanwhile, the company’s revenues totalled MYR11.94 billion, compared to MYR10.32 billion in H1 2016, with gains reported for all of the company’s subsidiaries bar its domestic one. Notable first half revenue increases were seen in Cambodia (up 19.9% y-o-y, driven by data revenue increases) and Bangladesh (up 40% y-o-y, boosted by subscriber gains). Although turnover in Nepal more than doubled in the opening six months of the year, this was in large part due to the fact that the unit was not fully consolidated until April 2016.
EBITDA in 2Q17 stood at MYR2.27 billion, representing an annualised increase of 10.1%, with first half EBITDA rising by 12.4% to MYR4.43 billion. Net profit, meanwhile, soared to MYR407 million in the second quarter, up from MYR189 million in the corresponding period a year earlier, with this attributed to ‘improved overall operational performance’. With capital expenditure (CAPEX) totalling MYR2.89 billion in the year to date, up more than 26% y-o-y, Axiata used the results announcement to reveal that it is raising its CAPEX guidance for the fiscal year to MYR7.1 billion, up from a previous figure of MYR6.6 billion. In so doing, it said the increased investment would help its ‘ongoing and focused efforts to be a clear number one in 4G and data leadership in selected key markets’.