The group’s revenue, however, increases by 4.9% to RM6.7b

by ANIS HAZIM / TMRpic

AXIATA Group Bhd posted a net loss of RM106.38 million for the second quarter ended June 30, 2022 (2Q22), against a net profit of RM277.75 million in 2Q21 due to foreign exchange (forex) losses contributed by its mobile operations in Sri Lanka.

In a filing to the local bourse today, the telecommunications group said the forex losses amounted to RM475.7 million, which Sri Lanka contributed RM155.7 million forex losses offset by higher taxes from one-off surcharge tax. 

Earnings per share also fell to 1.2 sen from 3 sen.

Its revenue, however, rose 4.9% to RM6.7 billion in the quarter under review, versus RM6.39 billion in the same quarter last year.

The group did not declare any dividend.

Compared to the immediate preceding quarter, Axiata’s net loss widen by 147.56% from RM42.97 million in 1Q21, while revenue rose by 3.71% from RM6.46 billion.

For the first half of 2022, the group recorded a net loss of RM149.35 million against a net profit of RM353.32 million a year ago, while revenue increased by 5.8% to RM13.17 billion from RM12.45 billion.

Moving forward, Axiata is confident that the group is likely to exceed the headline key performance indicators based on operational performance.

“Nonetheless, currency devaluation and inflation will have unfavourable impact on the reported profit after tax and minority interests of the group in 2022,” it said.

While operational performance in the year-to-date of 2022 remained encouraging, its board of directors recognises the current global macroeconomic risks, particularly in frontier markets such as Sri Lanka, Bangladesh and Nepal, and proactive measures are being taken to manage these risks.

Commenting on its mobile operation in Sri Lanka, Axiata acting group CEO Dr Hans Wijayasuriya said there is no plan to exit the Sri Lanka’s market despite the losses for the 2Q.

“I think we see this as a temporary situation in that country, as well as how we are managing the operations. I think we also see this as an opportunity — as you know, when there is a crisis, there is always an opportunity,” he told a media briefing in conjunction with Axiata’s 2Q22 results.

On its prospect, he said the group is confident to deliver better than what it has targeted for its financial year 2022.

“But we are conscious of the fact that the macro situation may have impact things like forex and other implications that we had in 1H22,” he added.

Axiata’s share closed 2.92% or nine sen lower at RM2.99, valuing the group at RM27.44 billion.