KUALA LUMPUR (Nov 30): Axiata Group Bhd’s earnings fell 7.7% to RM589.62 million in the third quarter ended Sept 30, 2011 from RM639.12 million a year ago on foreign exchange translation losses and higher operating costs.
According to notes to its accounts, it said on Wednesday that net foreign exchange losses surged to RM43.91 million compared with gains on financing activities of RM71.96 million a year ago.
It was also impacted by higher domestic interconnect and international outpayments which totalled RM433.16 million compared with RM374.60 million a year ago while marketing, advertising and promotion costs increased to RM413.53 million from RM371.66 million. Axiata said that staff costs had also increased to RM306.87 million from RM227.94 million.
Axiata’s revenue rose 6.5% to RM4.194 billion from RM3.937 billion due to higher revenue contribution from key operating companies. Earnings per share were 7.0 sen compared with 8.0 sen.
Axiata said among the operating companies, Robi Axiata Ltd’s revenue grew 13.3% mainly from higher prepaid and postpaid revenue which increased by 21.2% and 12.0% respectively.
Dialog Axiata Group’s revenue grew 10.3% mainly from higher prepaid and global revenue, which increased by 21.7% and 4.8% respectively.
Its Indonesian operations under XL reported a 7.6% increase in revenue in tandem with the increase in subscriber base of 6.7%.
Celcom Axiata Bhd’s revenue grew 6.8% driven by 15.1% increase in broadband subscribers and 6.5% increase in revenue generating base customers.
“The fluctuation of ringgit against local currencies of the operating companies had unfavourably affected the overall group’s translated revenue. At constant currency using 3Q 2010 exchange rate, the group revenue would have registered a higher growth of 8.3%, quarter-on-quarter,” it said.
“Operating costs of the group increased by 12.9% to RM2.375 billion in 3Q 2011 from RM2.104 billion in 3Q 2010, mainly driven by XL, Celcom and Dialog,” it said.
Axiata group’s depreciation, impairment and amortisation increased by 15.0% to RM783.3 million in the just ended quarter from RM681.0 million a year ago mainly due to higher capital expenditure in XL and Celcom and accelerated depreciation arising from network upgrade in Celcom and Robi.
Nine-months performance
For the nine months, its earnings showed a 15.7% decline to RM1.801 billion from RM2.137 billion. Its revenue rose 4.9% to RM12.183 billion from RM11.603 billion.
At constant currency, revenue would have been up 8%. Earnings before interest, tax, depreciation and amortisation (EBITDA) dipped 0.2% partly due to the strengthening ringgit against local currencies.
“At constant currency EBITDA would have grown 2.2%.The strengthening ringgit and marked depreciation of the Bangladesh Taka, higher costs incurred to support network expansion for data as well as a change in revenue mix, did have an impact on margins, which dipped 2.3 percentage points to 43.6%,” it said.
Axiata said the underlying profit after tax and minority interests (PATAMI), stripping off the one-off gains from the share disposal in XL and gains from the Spice merger exercise, was RM2 billion, up 5% on the back of continued operational improvements across the main operating companies.
It added that actual PATAMI, inclusive of extraordinary gains last year, decreased by 16%.
According to notes to its accounts, it said on Wednesday that net foreign exchange losses surged to RM43.91 million compared with gains on financing activities of RM71.96 million a year ago.
It was also impacted by higher domestic interconnect and international outpayments which totalled RM433.16 million compared with RM374.60 million a year ago while marketing, advertising and promotion costs increased to RM413.53 million from RM371.66 million. Axiata said that staff costs had also increased to RM306.87 million from RM227.94 million.
Axiata’s revenue rose 6.5% to RM4.194 billion from RM3.937 billion due to higher revenue contribution from key operating companies. Earnings per share were 7.0 sen compared with 8.0 sen.
Axiata said among the operating companies, Robi Axiata Ltd’s revenue grew 13.3% mainly from higher prepaid and postpaid revenue which increased by 21.2% and 12.0% respectively.
Dialog Axiata Group’s revenue grew 10.3% mainly from higher prepaid and global revenue, which increased by 21.7% and 4.8% respectively.
Its Indonesian operations under XL reported a 7.6% increase in revenue in tandem with the increase in subscriber base of 6.7%.
Celcom Axiata Bhd’s revenue grew 6.8% driven by 15.1% increase in broadband subscribers and 6.5% increase in revenue generating base customers.
“The fluctuation of ringgit against local currencies of the operating companies had unfavourably affected the overall group’s translated revenue. At constant currency using 3Q 2010 exchange rate, the group revenue would have registered a higher growth of 8.3%, quarter-on-quarter,” it said.
“Operating costs of the group increased by 12.9% to RM2.375 billion in 3Q 2011 from RM2.104 billion in 3Q 2010, mainly driven by XL, Celcom and Dialog,” it said.
Axiata group’s depreciation, impairment and amortisation increased by 15.0% to RM783.3 million in the just ended quarter from RM681.0 million a year ago mainly due to higher capital expenditure in XL and Celcom and accelerated depreciation arising from network upgrade in Celcom and Robi.
Nine-months performance
For the nine months, its earnings showed a 15.7% decline to RM1.801 billion from RM2.137 billion. Its revenue rose 4.9% to RM12.183 billion from RM11.603 billion.
At constant currency, revenue would have been up 8%. Earnings before interest, tax, depreciation and amortisation (EBITDA) dipped 0.2% partly due to the strengthening ringgit against local currencies.
“At constant currency EBITDA would have grown 2.2%.The strengthening ringgit and marked depreciation of the Bangladesh Taka, higher costs incurred to support network expansion for data as well as a change in revenue mix, did have an impact on margins, which dipped 2.3 percentage points to 43.6%,” it said.
Axiata said the underlying profit after tax and minority interests (PATAMI), stripping off the one-off gains from the share disposal in XL and gains from the Spice merger exercise, was RM2 billion, up 5% on the back of continued operational improvements across the main operating companies.
It added that actual PATAMI, inclusive of extraordinary gains last year, decreased by 16%.
