Axiata posts RM147mil net loss on group’s investment loss in India

PETALING JAYA: Axiata Group Bhd recorded a net loss of RM147.4mil for the first quarter, down from a net profit of RM239mil a year ago, mainly attributed to losses on dilution of the group’s investment in India.

The group’s revenue for the period ended March 31, 2018, also decreased by 2.3% to RM5.75bil due to unfavourable forex translation arising from the stronger ringgit, compared with the same quarter last year (1Q17), from all its major operating companies except for the Malaysian mobile operating entity.

In its filing with the stock exchange, the group said revenue would have grown 7.7% year-onyear at the constant currency level of 1Q17.

Earnings before interest, taxes, depreciation and amortisation (EBITDA) for the group also dropped 5.5% as a result of lower revenue.

The group’s profit after tax for the period fell more than 100% on the back of a RM94.4mil loss, mainly attributed to loss on dilution of its investment in India of RM357.6mil.

Share of results from associates and joint ventures was also lower by over 100% to record a loss of RM86.1mil, compared to a loss of RM30.5mil a year ago.

The group said its India associate continued to face intense market aggression, contributing to the over 100% fall in profit after tax and minority interests.

In Malaysia, revenue rose 11.9%, underpinned by strong growth in the data segment which grew by 12.9% and contributed 41.5% of total revenue.

EBITDA, however, decreased 13.9% to RM456.6mil, due to the impact on the adoption of MFRS15.

“The Malaysia operation remains stable, while operations in Indonesia were impacted by aggres- sive competition and challenges faced during the prepaid SIM registration process.

“Operations in Cambodia was also impacted by price pressures,” it said in the filing.

The group said operations in Sri Lanka and Nepal, meanwhile, continued to deliver excellent results and its Bangladesh operation had sustained its growth momentum following the smooth integration with Airtel.

“Despite it being a tough start to the year with intense competition particularly in India and Indonesia, I am pleased to see that Axiata’s underlying business performance remained on track and in line with target.

“We will continue to focus on long-term objectives and strengthen our fundamentals to ensure a stronger performance for 2018,” group chairman Tan Sri Azman Mokhtar said in a statement.