Axiata’s FY20 net profits slump on lower one-off gains, higher depreciation

25 Feb 2021

Malaysia-based telecoms group Axiata has published its financial results for both the quarter and year ended 31 December 2020, claiming what it called a ‘resilient performance in a challenging pandemic year’.

On a reported basis, revenue in the full year period declined marginally, falling by 1.5% year-on-year to MYR24.20 billion (USD5.9 billion), with the group attributing the drop mainly to ‘pandemic-related lockdowns posing distribution challenges and affordability in operating markets’. In the fourth quarter of 2020, by comparison, turnover was broadly unchanged against the corresponding period a year earlier, standing at MYR6.26 billion (4Q19: MYR6.27 billion).

Meanwhile, in what Axiata called ‘a positive affirmation of [its] resilience amidst tough externalities’, EBITDA increased by 0.4% y-o-y in FY20, to MYR10.66 billion, on the back of an improved performance from most of its subsidiaries, while fourth quarter EBITDA was up 0.2% on an annualised basis at MYR2.73 billion. The company was also keen to highlight operational expenditure savings, which it noted totalled MYR745 million in FY20.

Rounding out the company’s key financial indicators, Axiata revealed that net profit had declined significantly in FY20, to MYR365 million from MYR1.46 billion in the previous financial year, citing ‘lower one-off gains in 2020 and higher depreciation due to acceleration of 3G shutdown to refarm spectrum for better 4G service’ as reasons for the drop. Meanwhile, the company recorded a net loss of MYR256 million in 4Q20, compared to a net profit of MYR333 in the closing three months of 2019.

Malaysia, Axiata