KUALA LUMPUR: Telecommunication conglomerate Axiata Group Bhd’s net profit rose 247.11 per cent to RM277.76 million in the second quarter (Q2) ended June 30, 2021, from RM80.02 million a year ago.
In addition to higher top-line revenue, lower finance costs due to lower borrowings and taxes incurred during the third quarter contributed to the increase in net profit.
Axiata’s revenue climbed 10.3 per cent to RM6.39 billion from RM5.79 billion.
For the first half of the financial year ended June 30, 2021 (1H21), Axiata net profit rose 31.8 per cent to RM353.32 million from RM268.12 million, partly offset by accelerated depreciation recorded for 3G assets in several markets and lower one-off gains.
The company’s 1H21 revenue rose 5.3 per cent to RM12.45 billion from RM11.83 billion last year on the back of contributions from Celcom and Axiata Digital, offset by forex translation impact due to strengthening the ringgit against operating companies’ (OpCo) currencies.
Group earnings before interest, taxes, depreciation and amortisation (Ebitda) grew 8.2 per cent to RM5.50 billion with significant improvements from all OpCos except mobile operations in Indonesia and Bangladesh.
In 1H21, the company successfully achieved cost excellence with year to date operating expenditure savings of RM225 million.
As for Celcom Axiata Bhd, the company turnaround efforts yielded positive recovery momentum in the market despite an intensely competitive environment.
Celcom recorded a 12.4 per cent increase in EBITDA and 28.8 per cent in net profit.
Postpaid subscribers also grew 6.1 per cent year to date amidst impacts from the economic recovery.
Axiata chairman Tan Seri Ghazzali Sheikh Abdul Khalid said given the steady performance and sustained growth from the operational resilience, the company announced an interim dividend of four sen for its shareholders.
“With the successful conclusion of due diligence and signing of Transaction Agreements between parties in the run-up to complete the Celcom-Digi merger, we are now making steady progress in the ongoing regulatory approval stage.
“On that note, the board remains committed to ensuring that this merger delivers the best outcomes to serve the digital needs of our customers and nation,” said Ghazzali.
Source: New Straits Times
