Axiata net profit slumps by 13%

PETALING JAYA: Axiata Group Bhd's earnings fell 13.3% to RM584.84 million in the first quarter ended Dec 31, 2015 from RM674.88 million a year ago.
The company said the drop in earnings was due to a more challenging quarter at Celcom Axiata Bhd and PT XL Axiata Tbk, a weakening Rupiah and increased depreciation costs from growth driven capital expenditure (capex).
Revenue, however, was RM4.8 billion, up 5% from a year ago.
"The first quarter continued to be challenging for Celcom, affecting the group's results, as strong foundations are being put in place for data leadership and regaining any lost ground," Axiata president and group CEO Datuk Seri Jamaludin Ibrahim said in a statement yesterday.
He added that XL has been focusing on transformation plans with new branding, product, channel and acquisition strategies.
The quarter saw the group investing more than RM1 billion in capex, primarily towards strengthening the data network.
Jamaludin said data growth remains encouraging among its operating companies, as the group put in place strategies to accommodate the fast growing segment.
"As a Group we have already spent more than RM1 billion in capex in the quarter, primarily for investments in data. This has had implications on the short term results but we are confident to reap the benefits in the longer term. We have faced challenges before and successfully turned around in a relatively short time" he concluded.
The group's cash position remained robust at RM5.7 billion.