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Wireless

Axiata adds nearly 4 mln subscribers in Q3, tops 154 million in September

Monday 30 November 2020 | 11:37 CET | News
Axiata Group posted revenue of MYR 6.1 billion for the third quarter ended 30 Sepetmber 2020, which represents an increase of 5.5 percent quarter-on-quarter. EBITDA rose 9.9 percent to MYR 2.8 billion, while profit after tax jumped 100 percent to MYR 353 million underpinned mainly by higher toplines and other operating incomes as well as lower depreciation and amortisation.

EBITDA margin rose 1.1 percentage point to 44.2 percent, while capex moderation coupled with savings led to operating free cash flow growth of 44.7 percent to MYR 2.4 billion year-to-date. The number of total subscribers across the group increased by 3.9 million quarter-on-quarter to 154.7 million.

Axiata’s Malaysian unit Celcom posted a solid quarter-on-quarter recovery with revenue (ex-device), EBITDA and PATAMI growth of 6 percent, 24.2 percent and 64.5 percent, respectively, on the back of a jump in subscriber numbers coupled with lower provisions. The quarter saw an addition of 372,000 new prepaid and postpaid subscribers bringing the total number of subscribers to 8.4 million. Celcom’s network currently includes over 11,500 sites nationwide, serving over 13 million users.

Axiata also reports that its Indonesian unit XL’s performance held steady as revenue (ex-device) dipped marginally by 0.2 percent quarter-on-quarter, while EBITDA and PATAMI rose 3 percent and 48.1 percent, amidst competitive pressures and impact from COVID-19. Year-to-date profit after tax jumped more than 300 percent to IDR2.1 trillion mainly due to gains from the operator’s tower sale (excluding these gains, PATAMI was up 4.5 percent).

Sri Lankan unit Dialog delivered year-to-date revenue (ex-device), EBITDA and PATAMI growth of 0.8 percent, 4.2 percent, and 3 percent, respectively, while Bangaldeshi subsidiary Robi’s revenue (ex-device), EBITDA and PATAMI grew 1.3 percent, 7.5 percent and 1.9 percent, respectively year-to-date, from strong data growth and tight cost controls which also led to an expansion in EBITDA margin by 2.6 percentage points to 43.5 percemt. Revenue (ex-device) grew 9.1 percent quarter-on-quarter, from easing of lockdown, although EBITDA and PATAMI dropped 10.7 percent and 33.4 percent.

Nepalese unit Ncell’s existing business challenges from spectrum constraint to aggressive pricing from Internet Service Providers (ISPs), YTD revenue (ex-device), EBITDA and PATAMI declined 23.7 percent, 31.5 percent, and 77.6 percent, respectively; on the other hand, quarter-on-quarter revenue (ex-device) improved 5.2 percent after lockdown saw some easing in July. Philippines operator Smart’s revenue (ex-device) slightly declined by 0.5 percent, whilst strict cost controls yielded EBITDA and PATAMI growth of 6.1 percent and 4.8 percent, respectively.

Edotco’s revenue on a year-to-date basis grew by 3.9 percent, encouraged by positive contribution across most major footprints. However, on a year-to-date basis, adjusted EBITDA growth moderated to 0.9 percent, impacted namely by planned proactive risk monitoring measures of the financial condition of several customers across the footprint. Similar exercises led to a minimal movement of PATAMI on a year-to-date basis, standing at MYR 161 million. edotco recorded year-on-year growth of around 8 percent in tower count with a total of 21,521 towers, and year-on-year tenancies growth at around 6 percent.



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Categories: Mobile & Wireless
Companies: Axiata / Celcom / Dialog / Edotco / Ncell / Robi
Countries: Malaysia
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