Celcom turnaround pushes Axiata financials up for 2017
Astro Awani
Februari 22, 2018 20:09 MYT
Februari 22, 2018 20:09 MYT
The growth is attributed much on the Celcom turnaround plan as well as the XL transformation agenda / filepic
Axiata Group Berhad announced strong results in its audited full year performance for the financial year ended 31 December 2017.
The Group achieved all its headline KPIs and exceeded revenue and EBITDA (Earnings Before Interest, Tax, Depreciation and Amortisation) targets as the turnaround at Celcom and successful transformation at XL took place.
Axiata's other core mobile operations continued to present strong financial performance while the Group-wide cost optimisation initiatives delivered above expectations.
Financial Highlights
- Revenue improved 13.2% to RM24.4 billion with EBITDA up 15.2% to RM9.2 billion; both the highest in its history, while PAT improved by 76.9% to RM1.2 billion in spite of losses from Idea of RM450 million
- Celcom Turnaround and XL Transformation Agenda executed as planned, supported by excellent performance from all core mobile operations
- Cost Optimisation initiatives delivered savings of RM1.3 billion against target of RM800 million
- Achieved all FY17 KPIs; Exceeds Revenue and EBITDA targets
- Proposed full year dividend of 8.5 sen, translating to a payout ratio of 64%
With a 13.2% growth, Axiata registered its highest revenue at RM24.4 billion compared to RM21.6 billion in the previous year (FY16), from strong contributions across all its mobile Operating Companies.
Axiata also recorded a 15.2% increase in EBITDA to reach RM9.2 billion compared to RM8.0 billion in FY16 while EBITDA margin improved by 0.6 percentage points to 37.8% for the year on the back of higher revenue and cost optimisation initiatives.
Profit after tax (PAT) jumped by 76.9% to hit RM1.2 billion compared to RM657 million in FY16.
“Coming off a very challenging 2016, we were determined to make 2017 one of our best performing years," declared Tan Sri Jamaludin Ibrahim, President & Group Chief Executive Officer of Axiata.
Tan Sri Jamaludin added that “our two largest operations, Celcom and XL, delivered as planned. Celcom’s turnaround has been the key focus for us this year and I am pleased to demonstrate that a firm turnaround is on track".