Axiata’s Indonesia performance and contribution to group results was affected by intense market competition and significant drop of the rupiah’s value against the ringgit quarter on quarter by some 13.5 per cent.
KUCHING: Axiata Group Bhd (Axiata) posted revenue growth of 1.4 per cent to RM4.51 billion in the current quarter (4Q13) from RM4.44 billion recorded in the same quarter last year on the back of consistent higher revenue contribution from all key operating companies except Indonesia.
The group registered slightly lower revenue growth of 1.3 per cent with constant currency, it said in its statement to Bursa Malaysia yesterday. Operating costs of the group increased by 5.6 per cent to RM2,802.4 million in 4Q13 from RM2.65 billion in 4Q12, mainly driven by Malaysia, Bangladesh and Cambodia.
As a result, the group’s earnings before interest, tax, depreciation and amortisation (EBITDA) decreased by 4.7 per cent quarter-on-quarter with margin at 37.9 per cent, a decline of 2.4 percentage points mainly from dropped in Indonesia operations.
“Profit after tax (PAT) in the period decreased by 10.8 per cent to RM586.3 million due to lower EBITDA contribution and higher foreign exchange losses in Indonesia as a result of US dollar appreciation against the Indonesian rupiah, offset partly by higher profit performance from Malaysia, Sri Lanka and Cambodia in 4Q13.
Indonesia performance and contribution to group results was affected by intense market competition and significant drop of the rupiah’s value against the ringgit quarter on quarter by some 13.5 per cent. Excluding Indonesia, the Group performance would have registered strong growth at all key lines of revenue, EBITDA and PAT.
On the domestic front, Axiata’s operations in Malaysia saw gross revenue growing 2.3 per cent in 4Q13 mainly coming from broadband revenue which continued to show an uptrend quarter-on-quarter, increased 17.9 per cent driven by its growing broadband subscribers base of 17.1 per cent, and contributing 14.6 per cent to total revenue.
In 4Q13, Malaysia operating costs grew 4.5 per cent mainly from higher content provider charges and interconnect cost.
Consequently, EBITDA in the period showed decrease of 0.6 per cent with margin declining 1.3 percentage points to 41.6 per cent. In 4Q13, Malaysia’s PAT posted a double-digit growth of 18.6 per cent to RM515.0 million as compared to RM434.2 million in the prior year’s quarter, mainly flowing from the lower depreciation, amortisation and impairment recorded in the current quarter.
For the financial year ended Dec 31, 2013 (FY13), the group posted a revenue growth of 4.1 per cent to RM18.37 billion against RM17.65 billion recorded last year on the back of higher revenue contribution from all key operating companies except Indonesia.
At constant currency, revenue would have registered a stronger growth of 6.7 per cent. Operating costs of the group increased by 8.5 per cent to RM11.09 billion year-on-year from RM10.22 billion driven by Malaysia, Bangladesh and Cambodia operations.
Higher increase in cost against revenue in Indonesia mainly from aggressive data investment costs had adversely impacted group EBITDA performance, resulted in decrease of 2.1 per cent year-on-year and margin dipped by 2.5 percentage points to 39.6 per cent.
PAT in the year decreased by 4.9 per cent to RM2,738.6 million, mainly from lower profit contribution in Indonesia operations affected by lower EBITDA and higher foreign exchange losses, partly off-set by increased profit contribution from Malaysia, Bangladesh and Cambodia operations.