Malaysia's Axiata Group has reported an 11.2% year-on-year decline in net profit for the third quarter, largely as a result of forex losses at Indonesian subsidiary XL Axiata.
The company reported a profit of 631 million ringgit ($188.2 million), down from 715 million ringgit a year earlier.
But profit grew 41% sequentially, partly due to profits from the sale of the group's 24% stake in Thai mobile operator Samart i-mobile for $88.6 million.
Revenue increased 0.3% to 4.65 billion ringgit, but would have grown 4.2% in constant currency. The depreciation of the Indonesian rupiah meant revenue from the market remained flat despite strong data traffic and smartphone user growth.
Axiata's subsidiaries in Sri Lanka, Bangladesh and Cambodia recorded solid year-to-date revenue growth. Regional affiliates Idea Celluar (India) and M1 (Singapore) also had a strong performance.
“IT was a challenging quarter for the Group. Whilst headwinds continued at Celcom and forex did have an impact, overall good performance was seen in other markets, a reflection of strong execution across a balanced portfolio of investment,” Axiata CEO Jamaludin Ibrahim commented.
“The group is well positioned to finish the year on a stronger note as we regain momentum at Celcom and XL now well placed after completion of Axis integration.