Axiata Group Q1 profit falls 13.3%

Dylan Bushell-Embling
21 May 2015
Daily News

Malaysia's Axiata Group has reported a 13.3% drop in profit for the first quarter due to profit pressures faced by subsidiaries Celcom and XL.

Revenue grew 5% year-on-year to 4.8 billion ringgit ($1.33 billion), but net profit for the period fell to 585 million ringgit.

Malaysian mobile unit Celcom faced challenges due to its IT transformation project, with profit falling 12% despite a slight 1% increase in revenue.

Celcom's data revenue swelled 36% year-on-year to account for 26% of revenue, compared to 19% in the previous year.

Indonesian subsidiary XL Axiata reported a flat 5.5 trillion rupiah ($418.7 million) in revenue, partly as a result of reduced tower rental revenue. Date revenue improved 29% year-on-ear to account for 32% of total service revenue.

In Sri Lanka, Dialog Axiata's revenue improved 6% year-on-year to 17.3 billion rupees ($129.7 million). In Bangladesh, Robi Axiata revenue's gained 4% but profit declined. In Cambodia, Smart recorded a strong 40% revenue growth - with data growth more than doubling - and a net profit increase of 72%.

Regional associates Idea in India and M1 in Singapore also had a strong quarter. Idea's revenue grew 19% while its profit for India's full financial year swelled 62%. M1 reported revenue growth for the quarter of S$294.8 million ($220.8 million), up 23% year on year.


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