Axiata’s 2Q20 earnings fall 63.7% on full impact of Covid-19

by FARA AISYAH/ pic by ARIF KARTONO

AXIATA Group Bhd’s net profit slumped 63.7% to RM80.02 million in the second quarter ended June 30, 2020 (2Q20), from RM220.56 million last year, dragged by lower top lines, higher depreciation and amortisation, and lower one-off gains.

The fall was partly mitigated by foreign-exchange gain, as well as lower finance cost and tax.

Revenue dropped 5.9% to RM5.79 billion from RM6.15 billion in April to June 2019, as nearly the entire group’s operating companies registered revenue declined amid the pandemic.

“The full impact of Covid-19 was felt heavily in 2Q, especially in April when movement restrictions were in full throttle across our markets,” Axiata president and group CEO Tan Sri Jamaludin Ibrahim (picture) said in a statement yesterday.

“In line with macroeconomic uncertainties, directionally, the group expects to record a low single-digit percentage decline in revenue and earnings before interest, tax, depreciation and amortisation (Ebitda) in 2020.”

Axiata’s board has resolved a dividend of two sen for the year.

It’s also on track to achieve RM5 billion cost optimisation one year ahead of target, the company added.