Written by Joseph Chin
Monday, 30 November 2009 19:01
KUALA LUMPUR: Axiata Group Bhd net profit jumped 118.9% to RM503.67 million in the third quarter ended Sept 30, 2009 from RM243.89 million a year ago, underpinned by higher contributions from Celcom (Malaysia) Bhd and its overseas operations.
Axiata said on Monday, Nov 30 that revenue rose 3.1% to RM3.38 billion from RM3.27 billion while earnings per share were six sen compared with four sen a year ago.
It said the revenue was due to higher contribution from Celcom and Axiata (Bangladesh) Ltd (AxB). Celcom and PT Excelcomindo Pratama Tbk (XL) continued to be the main contributors of the group for the quarter.
"In local currency, XL recorded a positive quarter-on-quarter revenue growth. However in ringgit translated result, XL's revenue in the current quarter is lower compared to 3Q08 due to the depreciation of the Indonesian rupiah against the ringgit," it said.
In local currency, Dialog and Telekom Malaysia International (Cambodia) Co. Ltd (TMIC) recorded lower revenue growth from a year ago. TMIC's business operation continues to be challenging with nine operators in the market with intense competition and heavy price cuts from the new entrants.
The strengthening of the ringgit in current quarter against domestic currencies of operating companies had unfavourably affected the group's translated revenue. At constant currency using 3Q08 exchange rate, current quarter revenue would have registered a higher growth of 5.6%.
Quarter-on-quarter, the group's other operating cost increased by 2.1% to RM2.07 billion, mainly driven by Celcom and AxB.
"Celcom's other operating cost increased mainly due to higher interconnection cost, marketing and product promotion activities costs related to the festive celebration in the current quarter. Increases in universal service provision charges also impacted Celcom's other operating costs," it said.
Axiata added AxB's other operating cost increased quarter-on-quarter mainly resulting from higher subscriber acquisition costs in line with revenue growth.
The group recorded lower net finance costs of RM168.6 million in current quarter compared to RM275.4 million in 3Q08 as a result of repayment of debt and reduction of overall debt position in current quarter.
Current quarter contributions from associates and joint venture amounted to RM30.1 million, mainly from the profit contribution from Idea, which was accounted for as an associate in 3Q09.
For the nine-month period, group revenue increased 5% on-year to RM9.4 billion from RM8.93 billion. This was primarily led by the continued strong performances of Celcom and XL recording on-year revenue growth of 12% and 7% respectively on the back of higher subscriber additions and usage.
"Subscriber net additions for the group were 25.3 million. Earnings before interest, tax, depreciation and amortisation (EBITDA) was stable, up by 0.2% in the same period, to RM3.6 billion.
"Year to date profit after taxation and minority interests (PATAMI) was RM 1.1 billion, up 8% on-year. On a normalised basis, PATAMI marginally decreased by 3%, excluding the higher forex gains in 2009 and finance costs related to the Idea acquisition and TM loan," it added.