Axiata raises several KPI targets

KUALA LUMPUR: Axiata Group Bhd has raised several financial year 2019 key performance indicators (KPIs) upward following its improved performance in the first half of the year.

President and group chief executive officer Tan Sri Jamaludin Ibrahim said Axiata had revised its earnings before interest, taxes, depreciation and amortisation growth to above the initially targeted five to eight per cent.

He said the group was also looking at the prospect of spending lower capital expenditure (capex) this year from the initial target of RM6.8 billion on the back of ongoing capex rationalisation.

Revenue growth target was unchanged at three to four per cent, he added.

“We are shifting gear towards profitability and cash focus and based on our second quarter (Q2) result, it has already showing tangible results with RM473 million savings achieved year-to-date.

“Barring unforeseen circumstances, we are likely to exceed our financial year 2019 KPIs given the first half performance. Of course we there are going to be some factors, externally and internally. But we are in a good shape,” he said at a briefing on Axiata’s interim performance here today.

The group returned to the black in first half (1H) ended June 30 2019, with a net profit of RM913.15 million from the net loss of RM3.5 billion recorded a year ago.

This was on the back of double-digit growth at Robi Axiata Ltd, PT XL Axiata Tbk, edotco Group Sdn Bhd and Smart Axiata Ltd, as well as cost excellence initiatives across the group.

Its revenue increased four per cent to RM12.1 billion from RM11.62 billion, driven by positive contributions from all operating companies with the exception of Celcom Axiata Bhd and Ncell Pte Ltd.

For the second quarter, Axiata registered a net profit of RM209.09 million from a net loss of RM3.36 billion, while revenue grew to RM6.15 billion from RM5.87 billion.

“Following our portfolio rationalisation of non-core assets over the last 12 months and our ‘shifting gear’ focus towards profitability and cash, we are pleased to deliver a very good set of tangible results fueled by cost excellence and strong operational performance across the group.

“With this, we believe we can meet our headline KPIs in 2019 and to realise Axiata’s profitable growth and cash focus,” said Jamaludin.

Axiata’s board of directors approved a tax-exempt interim dividend of five sen per share.

Source: NST