Info Image

Axiata's Q2 Net Profit Plunges 69.1%, but Increases Capex to RM6 billion for the Year

Axiata's Q2 Net Profit Plunges 69.1%, but Increases Capex to RM6 billion for the Year Image Credit: Axiata

Axiata Group's net profit plunged 69.1 per cent to RM188.93(~USD46.8) million in the second quarter from RM610.76(~USD151.2) million recorded a year ago, although its revenue grew by 12.8% to RM5.3 billion.

The group Operator which has businesses in Malaysia, Indonesia and South Asian countries including India and Nepal attributed the sharp decrease to operational performance at some Operating Companies (OpCos), incremental depreciation and amortization, net finance costs and forex losses. Axiata booked a net RM185.8 million foreign exchange los. It also recorded a total of RM1.39 billion mainly driven by higher depreciation in Indonesia as well as amortization of intangible assets arising from an acquisition in Nepal.

For the first six months of the year, Axiata’s net profit dropped 53.4 per cent to RM557.19 million from RM1.19 billion recorded during the same period a year ago. Its revenue during this period increased 9.1 per cent to RM10.32 billion from RM9.46 billion recorded last year.

Despite the mixed results, Axiata expects to spend RM6bil in Capex this year, an upward revision from the company’s earlier estimated Capex of between RM5.5bil and RM5.7bil. A big chunk of the allocation will be used to improve its network quality in Malaysia, Indonesia and Bangladesh, said Axiata.

Tan Sri Jamaludin Ibrahim, President & Group Chief Executive Officer of Axiata
The management refresh at Celcom will accelerate the momentum already built over the last few months by the present team, and with a mandate to further introduce new and long lasting initiatives to completely turnaround the company I am optimistic this will result in a stronger recovery that is sustainable. At XL, its transformation agenda remains the right strategy for the long term albeit with some short-term challenges from the decline in revenue from legacy services. 

Author

Ray is a news editor at The Fast Mode, bringing with him more than 10 years of experience in the wireless industry.

For tips and feedback, email Ray at ray.sharma(at)thefastmode.com, or reach him on LinkedIn @raysharma10, Facebook @1RaySharma

PREVIOUS POST

Mobile Data Drives Up Smart Communications 1st Half Revenues by 55%

NEXT POST

Data & Broadband Services Account Nearly 60% of PLDT's Enterprise Revenues