Axiata Records Profit Of RM1.65 Billion For 2009

KUALA LUMPUR, Feb 24 (Bernama) -- Axiata Group Bhd reported a 232 per cent increase in profit after tax and minority interests (PATAMI) to RM1.65 billion for the year ended Dec 31, 2009 from RM498 million in 2008.

Group revenue grew 15 per cent to RM13.1 billion, driven by continuous improvement in performance from all operational companies.

Its President and Group Chief Executive Officer, Datuk Seri Jamaludin Ibrahim, said the continuous improvement could be seen across the board, particularly PT XL Axiata Tbk and Axiata (Bangladesh) Ltd, which returned to black compared to losses in 2008 on the back of relentless cost management.

The group also turned free cash flow positive for the first time, up 265 per cent to RM2.1 billion, he said during a media briefing on the group's 2009 financial results here Wednesday.

When asked on any dividend announcement, Jamaludin said the group was not planning to announce a dividend as it wanted to use the funds for further growth.

For the current financial year ending Dec 31, 2010, the group would be spending between RM4 billion and RM4.5 billion in capital expenditure (CAPEX) to boost its expansion programme.

"We plan to spend RM4 billion to RM4.5 billion on information technology to build a new model which can help reduce cost and synergise the five countries' operations," he said.

He said the group was expecting "good growth" on the back of improved macro economic condition.

"But we expect the competitive environment in some countries will be heating up. We have to balance the competition pressure from all countries," said Jamaludin.

To drive future profits, he said the group was looking at subscriber growth, mobile broadband as well as non-voice services from all the countries where it operates.

Jamaludin said the group expected to come out with the target for its current financial year by May this year.

Currently, the group, including its subsidiaries and associates, has over 120 million mobile subscribers in Asia and 511,000 mobile broadband subscribers.

Meanwhile, commenting on plans to dispose non-core assets, its Group Chief Financial Officer, Datuk Yusof Annuar Yaacob, said the disposal of some of these assets would be finalised by the first quarter of this year.

-- BERNAMA