India merger, forex costs hit Axiata financials

Vodafone Idea officially starts operation as largest Indian telco

Malaysia-based Axiata Group reported a decline in income in Q3 on combined outcomes for its working corporations, together with a pointy drop in internet revenue as a result of one-off costs and forex swings.

Net revenue dropped 45 per cent year-on-year to MYR132 million ($31.5 million): in an announcement, the corporate mentioned the drop was as a result of important strengthening of the Malaysian ringgit in opposition to all regional currencies; impairment and transaction costs associated to a merger of Idea cellular with Vodafone India; and changes in shifting to a brand new accounting commonplace. Consolidated group income fell 3.2 per cent to MRY6 billion.

Jamaludin Ibrahim, Axiata’s president and group CEO mentioned the corporate had been “significantly challenged by the ringgit and regional currency depreciation” with loans in US {dollars} affected and dividend funds to the group impacted by working firm currencies “depreciating faster than the ringgit”.

In the 9 months to end-September, the corporate mentioned a value optimisation programme achieved MYR1.Three billion in financial savings: its goal for the complete yr is MYR1.Four billion.

Op-co Q3 efficiency
Celcom in Malaysia recorded a 10 per cent year-on-year improve in income to MYR1.81 billion. Its complete subscriber base fell 4.5 per cent to 9.23 million, with pay as you go subs down 6.Eight per cent and put up paid up almost 1 per cent. Blended ARPU rose 4.Three per cent to MYR48. Average knowledge utilization jumped to 13.1GB within the quarter from 7.2GB in Q3 2017.

Its Indonesia unit, XL, continued to face headwinds, with income dipping almost 2 per cent to IDR5.87 trillion ($406 million) in Q3. Blended ARPU fell 8.6 per cent to IDR32,000, with pay as you go ARPU down 13.Three per cent. Data income accounted for 64 per cent of complete turnover, up from 59 per cent in Q3 2017.

XL added 3.71 million subs to finish September with 53.9 million. Prepaid subs rose 2 per cent, accounting for 98 per cent of the whole, whereas put up paid elevated 51 per cent to 954,000.

Dialog in Sri Lanka posted a 12 per cent improve in income to SLR27.95 billion ($155 million); income at Robi in Bangladesh was flat at BDT17.5 billion ($209 million); and Nepal unit Ncell’s income fell Three per cent to NPR14.1 billion ($124 million).

Axiata’s infrastructure unit, edotco, grew income 4.1 per to MYR404 million.

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