Axiata eyes opex, capex savings of RM1.5 bln in two years — CEO
KUALA LUMPUR: Axiata Group Bhd (Axiata) is working towards RM1.5 billion additional operating expense ( opex) and capital expenditure (capex) savings in 2018 and 2019.
“We have built in RM800 million opex and capex savings in our 2017 plan, and we are working towards RM1.5 billion additional savings in 2018 and 2019,” said president/ group chief executive officer, Tan Sri Jamaludin Ibrahim.
He said this should be reflected in improved margins in 2018 and beyond.
“For 2017, the group has committed to be the clear No.1 in 4G and data leadership in selected key markets as well as lead in the digital space,” he said in a statement announcing Axiata’s 2016 financial year results.
Axiata’s pre- tax profit for financial year ended December 31, 2016 slipped by 66 per cent to RM1.13 billion from RM3.33 billion in 2015.
Revenue, however, rose to RM21.56 billion for the year ended December 31, 2016 compared with RM19.88 billion in 2015.
On the group’s full-year results, Axiata’s chairman, Tan Sri Azman Mokhtar, said globally, the telecommunications sector has been experiencing greater competitive market pressures and regulatory challenges.
As a regional group operating under a multitude of conditions, Axiata was not spared, he said.
“The group’s 2016 profitability was impacted by foreign currency losses due to the weakened ringgit, a function of the geopolitical and
We have built in RM800 million opex and capex savings in our 2017 plan, and we are working towards RM1.5 billion additional savings in 2018 and 2019. Tan Sri Jamaludin Ibrahim, president/group chief executive officer
macroeconomic uncertainties that persisted, as well as by one-off merger and acquisition charges and performance in some of our key markets,” he said.
He said the board has taken this and the uncertain investment climate into account in adopting a temporarily more prudent dividend payout to ensure the group was sufficiently resilient while continuing to invest for the future.
“Last year was especially an extremely tough year for the group with a combination of external and some internal challenges,” said Jamaludin.
He said despite its topline revenue showing stronger performance, profitability was below expectation and Axiata was naturally dissatisfied with the performance of some of its companies but are pleased that most others have done very well. — Bernama