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KUALA LUMPUR: Axiata Group posted net losses of RM147.41mil in the first quarter ended March 31, 2018 weighed down by the Indian telecommunications market and due to forex translation impact as the ringgit strengthened.
The telco company said on Tuesday this was in contrast with the earnings of RM239.01mil a year ago.
Loss per share were 1.6 sen compared with earnings per share were 2.7 sen. Its revenue was RM5.748bil compared with RM5.881bil.
However, profit after tax (PAT) for the group was impacted by share of business losses from Idea of RM124.3mil against losses of RM25.4mil in 2017 as the Indian telecommunications market continued to struggle with the devastating price war and a hyper competitive market.
The group recorded a non-cash dilution loss of RM357.6mill from non-participation of preferential new shares issued.
“Group losses for the quarter was RM95.1mil. Excluding the impact of Idea, PAT for the group would have been up by 34.6% or RM386.9mil,” it said.
Axiata said amid external challenges, the group recorded healthy underlying business performance in line with targets.
Most of its operating companies (OpCos) gained revenue market share in their respective countries, it said.
Axiata said year-on-year, at constant currency and excluding the newly introduced Malaysian Financial Reporting Standard (MFRS) application, group revenue improved 5.2% from RM5.9bil to RM6.2bil benefiting from increased revenue market share in most OpCo markets.
Earnings before interest, tax, depreciation and amortisation (Ebitda) also improved by 4.3% to RM2.25bil compared to RM2.15bil from the group’s continued cost optimisation programme.
At actual currency and post-MFRS application, group revenue slipped by 2.3% to RM5.7 bil from RM5.9bil due to forex translation impact as the Ringgit strengthened significantly against all OpCo regional currencies compared to the same period in 2017.
This saw earnings before interest, tax, depreciation and amortisation (Ebitda) for the group dropped by 5.5% to RM2bil as a result of lower revenue. PAT declined to RM94.4mil of losses.
“Excluding Idea share of business losses of RM114.4mil and dilution losses of RM357.6 mil, PAT for the group would have increased by 31.4% tor RM377.6mil,” it said.
Group-wide cost optimisation programme remains on track to deliver the targeted RM1.3bil of savings for 2018.
“Balance sheet for the group was healthy with gross debt/Ebitda at 2.23 times versus 2.40 times in the corresponding quarter for 2017. During the quarter, the Group generated RM160mil in operating cash,” it said.
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