KUALA LUMPUR, Aug 27 — Axiata Group Bhd’s net profit reduced to RM80.02 million in the second quarter ended June 30, 2020 from RM220.56 million, mainly due to lower top lines, higher depreciation and amortisation, and lower one-off gains.
The weaker net profit was partly mitigated by foreign exchange gain, lower finance cost and tax, said the group in a filing to Bursa Malaysia today.
Revenue for the quarter fell to RM5.79 billion from RM6.15 billion a year before due to adverse impacts from the recent Covid-19 pandemic and lockdown measures across the operating companies’ markets.
“All operating companies registered a decline in revenue, except the mobile operations company in Indonesia and the infrastructure segment,” said Axiata.
For a six-month period, Axiata’s net profit shrank to RM268.12 million from RM945.72 million year-on-year while revenue eased to RM11.83 billion from RM12.10 billion.
In a separate statement, the group said it estimates a revenue impact of approximately RM400 million in the first half of 2020, mainly from distribution shutdowns and outlet closures during stringent movement controls, preventing subscribers from accessing prepaid reloads as well as the provision of free data and bonus recharge to customers.
In prioritising emergency needs as Malaysia and the region faced an unprecedented healthcare crisis, sharp economic contractions and rising unemployment in the second quarter, Axiata and its operating companies extended assistance in cash and in kind of approximately RM80 million.
For long-term planning and stability, Axiata continued to employ proactive balance sheet management, with cash balance growing to RM5.9 billion year-to-date (YTD) from RM5.4 billion in the same period last year.
Free cash flow grew 4.3 per cent YTD to RM 2.5 billion, mainly due to 3.8 per cent lower capital expenditure (capex) while operating free cash flow jumped 17.2 per cent to RM1.2 billion arising from lower capex and tax. — Bernama
