AXIATA Group Bhd returned to the black with a net profit of RM332.6 mil in the fourth quarter ended Dec 31, 2019 from a net loss of RM1.4 bil a year ago mainly due to better operational performance resulting in higher earnings before interest, tax, depreciation and amortisation (EBITDA), as well as one-off impairments of RM1.8 bil adjusted in 4Q18. Revenue in Q4FY19 was flattish at RM6.3 bil yoy.
For its full year results, the telecommunication giant posted a net profit of RM1.5 bil versus a net loss of RM4.8 bil in the previous year while revenue rose marginally to RM24.9 bil from RM23.9 bil. Its group earnings before interest, tax, depreciation and amortisation (EBITDA) rose 27.4% yoy to RM10.6 bil.
The company said it managed to turn around in FY19 mainly due to improved performance, lower depreciation and amortisation, foreign exchange gain, discontinued losses related to its investment in India as well as gain from divestments in M16 and digital venture assets.
“The excellent set of results delivered by Axiata in 2019 signals that the group is on the right track with its profit and cash focus. We will continue to strengthen the group’s balance sheet, while staying the course in ensuring operational excellence across our markets,” Axiata chairman Tan Sri Ghazzali Sheikh Abdul Khalid said in a statement on Feb 21.
The board has approved a full-year dividend payout of nine sen per share, which included the first interim dividend of five sen. “Additionally, we have declared a special dividend of 0.5 sen from the M1 divestment,” Ghazzali added.
Meanwhile, Axiata president and group CEO Tan Sri Jamaludin Ibrahim said: “The group’s 2019 performance reflects the well-executed strategies and adjustments made in response to the hyper-competitive and fast-shifting industry landscape.
“The Shifting Gear focus has been on point, as all OpCos (operating companies) are now profitable with XL and Robi surging over 100%. It is also encouraging that despite our focus on profit, excluding Ncell, all operating companies performed exceedingly well with one continuing to maintain market share while the rest charged ahead to substantially gain during the year.”
He added that while containing costs, the company managed to capture RM1.3 bil capex and opex savings which translated into improved EBITDA margin. – Feb 21, 2020
