Axiata’s Q3 EBITDA jumps 29% on 3.5% revenue growth
In this article (5)
Axiata Group posted revenue of MYR 6.2 billion for the third quarter of 2019 (3Q19), which represents an increase of 3.5 percent year-on-year. EBITDA jumped 29 percent to MYR 2.8 billion, boosted by revenue growth as well as the group’s cost reduction initiatives which resulted in MYR 816 million in savings. Profit after tax jumped 33.5 percent to MYR 247.6 million for the quarter as a result of better topline, the company said. However, profit after tax and minority interest (PATAMI) fell 9.4 percent to MYR 119.7 million due to the absence of M1’s contribution following its disposal, as well as higher taxes in Bangladesh.
Amid a highly competitive market in Malaysia, Celcom’s free cash flow rose 15.3 percent to MYR 674 million year-to-date, supported by EBITDA growth of 3.9 percent. PATAMI rose 7.9 percent to MYR 562 million. Celcom’s combined postpaid and prepaid revenue rose 0.6 percent, while mobile service revenue dropped 4.1 percent impacted by the decline in wholesale revenue. Blended ARPU improved by MYR 1 compared to the preceding quarter to MYR 52 in the third quarter of 2019. Celcom’s 4G population coverage rose to 93 percent, and its 4G LTE-A coverage reached 81 percent compared to 90 percent and 78 percent, respectively, in September 2018.
Parent company Axiata also reported that its Indonesian unit XL’s turnaround in the period was led by its data-focused strategy continuing to deliver results as market share rose 0.6 percentage points to 18.3 percent, returning to profit with PATAMI at IDR 498 billion. Revenue grew 10.6 percent year-to-date driven by strong data growth of 30.4 percent. XL’s free cash flow surged 50.9 percent to IDR 1.8 trillion, on the back of cost efficiencies fueling 19.4 percent jump in EBITDA. XL says it captured 88 percent of 55.5 million total subscribers from 53.9 million in the third quarter of 2018. In support of its data strategy, XL’s 4G service is now available in 410 cities across Indonesia.
Sri Lanka unit Dialog saw its revenue expand 8.1 percent year-to-date due to continued growth momentum across its TV (+16.6%), fixed (+8.7%) and mobile (+0.4%) businesses. Free cash flow grew 39.5 percent to SLR 19.2 billion buoyed by higher EBITDA and calibrated network rollout. Its PATAMI rose by 12.5 percent to SLR 8.3 billion YTD.
“XL says it captured 88 percent of 55.5 million total subscribers from 53.9 million in the third quarter of 2018.”
Philippines subsidiary Smart delivered double-digit growth across all metrics with revenue, EBITDA and PATAMI up by 11.4 percent, 14.5 percent, and 14.3 percent, respectively, and FCF by over 200 percent.
Despite new Bangladesh taxes, Robi returned to profit with PATAMI at BDT 1.6 billion. Revenue reaches BDT 19 billion in the three months ended 30 September 2019, as ARPU rose to BDT 125.
With international long-distance revenue dropping 10.5 percent year-to-date, Ncell’s core mobile revenue declined 3.5 percent as a result of intense competition by internet service providers and Business Support System migration. Although PATAMI slipped 3.6 percent, PATAMI margin remained stable at 31 percent. Free cash flow fell 42.8 percent due to calibrated network rollout.
In this year’s third quarter, edotco posted double-digit growth across all financial metrics. Revenue grew by 19 percent year-to-date, with positive contributions across its major footprints. The tower company recorded adjusted EBITDA growth of 26.7 percent, with 3.2 percentage points improvement in (adjusted) EBITDA margin driven by enhanced billing against lower maintenance costs in 2019. The improvement in EBITDA led to a 4-fold increase in free cash flow year-to-date, as well as growth in PATAMI of 10.4 percent year-to-date.
Questions & Answers
Q.What specifically caused the overall profit after tax and minority interest (PATAMI) to fall, despite a rise in general profit after tax?
What specifically caused the overall profit after tax and minority interest (PATAMI) to fall, despite a rise in general profit after tax?
PATAMI fell because M1 no longer contributed to earnings after its disposal. Also, higher taxes introduced in Bangladesh during the quarter also impacted the overall profit figure.
Q.How did Celcom improve its average revenue per user (ARPU) and its network coverage in Malaysia?
How did Celcom improve its average revenue per user (ARPU) and its network coverage in Malaysia?
Celcom's blended ARPU increased by MYR 1 to MYR 52 compared to the preceding quarter. Its 4G population coverage improved to 93 percent, and 4G LTE-A coverage reached 81 percent.
Q.Which of Axiata's units reported the most significant growth in free cash flow during this period?
Which of Axiata's units reported the most significant growth in free cash flow during this period?
Philippines subsidiary Smart saw its free cash flow increase by over 200 percent. XL, the Indonesian unit, also reported a significant surge of 50.9 percent in its free cash flow.
Q.What impact did new taxes in Bangladesh have on Robi's financial performance in the third quarter?
What impact did new taxes in Bangladesh have on Robi's financial performance in the third quarter?
Despite the new taxes in Bangladesh, Robi returned to profit in the quarter, reporting a PATAMI of BDT 1.6 billion. Its revenue reached BDT 19 billion.
Reader pulse
What drove Axiata's results?
17,781 votes so far