Axiata rings up RM576.8m net profit in 2nd quarter

By Jeeva Arulampalam

Published: 2010/08/26



The mobile phone group plans to pay dividends of at least 30 per cent of its net profit starting next year and the ratio is due to rise over time.




Axiata Group Bhd (6888), a mobile phone group, posted a net profit growth of 9.5 per cent to RM576.82 million for its second quarter due to stronger growth in its operating companies locally and abroad.



The group also plans to pay dividends of at least 30 per cent of its net profit starting next year and the ratio is due to rise over time.



This will depend on its cashflow and be determined by business prospects and capital requirements.



Axiata president and group chief executive officer Datuk Seri Jamaludin Ibrahim said yesterday that he expects revenue growth for the second half of the year to be slower due to tougher competition.

The group has a controlling interests in mobile operators in Malaysia, Indonesia, Sri Lanka, Bangladesh and Cambodia.



Jamaludin told reporters during the company's half-year results briefing yesterday in Kuala Lumpur that Axiata was on track to meet its full-year revenue growth target of 12.1 per cent.



The group also hopes to achieve growth in earnings before interest, tax, depreciation and amortisation (EBITDA) of 14.1 per cent and return on invested capital (ROIC) of 10.7 per cent.



For the three-month period to June 30 2010, the group's revenue was up 20 per cent to RM3.85 billion.



EBITDA grew by 38 per cent for the period to RM1.8 billion due to strategic cost initiative programmes implemented last year while EBITDA margin improved 6.3 percentage points to 47 per cent from a year ago.



Its local unit, Celcom Axiata Bhd, saw revenue grow 11 per cent to RM1.7 billion for the three-month period from a year ago as non-voice services went up and mobile broadband surpassed 700,000 customers, contributing 9 per cent to its revenue.



Axiata (Bangladesh) Ltd and Indonesian PT XL Axiata Tbk (XL) saw their revenues rising 37 per cent and 29 per cent, respectively, for the quarter.



For the first half of the year, Axiata's net profit tripled to RM1.5 billion due to better contributions from its mobile operating units and a one-off gain on disposal of XL shares.



Revenue for the six-month period ended June 30 2010 was up 25 per cent to RM7.67 billion.



EBITDA went up 45 per cent in the same period to RM3.5 billion while EBITDA margin improved 6.1 percentage points to 45.5 per cent.



Meanwhile, Jamaludin shot down earlier reports that Axiata was looking to bid for a third-generation mobile licence in Thailand with Thai telecommunications group Samart Corp plc.



A Reuters report last week quoted Samart Corp's chief as saying that Samart and Axiata, through their unit, Samart i-Mobile (SIM), will join the bid.



While Jamaludin acknowledged that Samart was an Axiata affiliate with it owning 19 per cent of the former's shares and 24 per cent of SIM, he said the news that Axiata was joining the bid was untrue.

http://www.btimes.com.my/Current_News/BTIMES/articles/jaxiat-2/Article/