Axiata Reports US$290.371 Million Profit for 1st Quarter

KUALA LUMPUR, May 22 (Bernama) -- Axiata Group Bhd has scored a higher pre-tax profit of RM905.134 million (US$290.371 million) for the first quarter ended March 31, 2012 compared with RM902.21 million (US$289.39 million) in the corresponding quarter last year. Revenue for the three-month period rose eight per cent to RM4.255 billion (US$1.365 billion) from RM3.94 billion (US$1.26 billion). In a filing to Bursa Malaysia on Tuesday, the regional telecommunications player attributed the growth in revenue and profit to the fine performance of its major operating companies. Axiata said its regional mobile subscribers grew 24 per cent year-on-year to over 200 million, thus, making the group one of the largest telcos in the region. "Momentum was sustained into the first quarter of the year with Celcom continuing to show positive revenue growth for the 24th consecutive quarter. "Revenue was up 10 per cent on a quarter-on-quarter basis. "In a traditionally slow quarter and despite coming off an exceptional fourth quarter 2011, which saw record breaking earnings, revenue was up by 0.4 per cent," the telco said. Axiata President and Group Chief Executive Officer Jamaludin Ibrahim said it was very good to see all of the company's operating companies posting solid year-on-year and quarter-on-quarter growth amidst difficult market conditions, and in a traditionally slower quarter. "Strong data growth continues especially at Celcom, XL and Dialog, with data users now accounting for more than 50 per cent of XL subscribers. "This has led to some margin pressure at our operating companies but we remain confident in the long term. This quarter provides a very positive signal for the start of 2012. With the strong performances seen, excluding any adverse forex impact, we are on track to achieve our Key Performance Indicators (KPI)," he said. Moving forward, Jamaludin said 2012 would be a game changing year for Axiata. He said significant changes were already affecting the industry such as the rapid demand in data and to meet this demand, the company had begun a comprehensive and holistic approach to data looking at it from revenue opportunities, cost structure, customer experience, organisational reforms and new business models. "Moving forward we are confident of delivering profitable growth and driving differentiation through innovative digital services and products. "The results this quarter are certainly a step in the right direction," he added. -- BERNAMA