Axiata posts Rm120mil profit in third quater
Telco’s topline advances 3.5% to Rm6.2bil
PETALING JAYA: Axiata Group Bhd registered a 33.5% year-on-year (y-o-y) increase in profit after tax to Rm247.6mil for the third quarter of the financial year ending Dec 31, 2019 (FY19).
This was on the back of a 3.5% y-o-y growth in topline to Rm6.2bil due to a better performance by most of its operating companies.
However, the group’s profit after tax and minority interest (Patami) decreased 9.4% to Rm119.7mil due to the absence of M1’s contribution following its disposal, as well as higher taxes in Bangladesh.
Its earnings before interest, tax, depreciation and amortisation (Ebitda) increased 29% to Rm2.8bil y-o-y.
Excluding the MFRS 16 impact and at constant currency of third quarter ended Sept 30, 2018, group Ebitda grew 9.8% driven by revenue growth coupled with cost excellence initiatives.
On a year-to-date basis, Axiata’s Patami for the nine months of FY19 rose by over 100% to Rm1.03bil, lifted by one-off gains from disposal of M1, divestment of non-core digital businesses and disposal of Vodafone Idea Ltd (Idea) rights as compared to Idea-related losses during the corresponding period last year.
In a media release yesterday, Axiata said its Ebitda grew 26.3% to Rm7.9bil year-to-date, on the back of double-digit growth recorded at Celcom Axiata Bhd, PT XL Axiata Tbk, Robi Axiata Ltd, Smart Axiata Company Ltd and edotco Group Sdn Bhd.
At constant currency of YTD18 and excluding MFRS 16 impact, the group’s Ebitda registered strong growth of 10.3% due to improved performance by all operating companies except Ncell Pte Ltd.
Additionally, Axiata’s free cash flow (FCF) jumped 1.9 times to Rm3.5bil, boosted by higher revenue and savings from cost excellence initiatives across the group.
Axiata also successfully pared down RM 2.2bil debt for the quarter.
In a media release yesterday, Axiata president and group CEO Tan Sri Jamaludin Ibrahim said the group is likely to exceed the targeted FY19 headline key performance indicators (KPIS) for Ebitda growth of 5% to 8% and return on invested capital of 5.2% to 5.6%, given the current trajectory and barring unforeseen circumstances.
“The group’s performance shows we have successfully ‘shifted gear’ these last nine months to take the lead among our peers in this region.
“I am particularly proud of our operating companies emerged as top in their respective markets in meeting most of the metrics in Ebitda, profit and cash for this quarter.
“We have been working hard to step up on operational excellence across the group and maintain the gruelling momentum since unveiling our 2019 to 2020 plans.
“Thus far, our main concern in most of our markets is in regulatory risks,” he said.