Axiata Group Bhd recorded a profit of almost double or 96.9% to RM352.99 million for the third quarter ended 30 September 2020 (3QFY20) compared to RM179.27 million in the previous quarter.
These gains are driven by high earnings before interest, taxes, depreciation and amortization (EBITDA) as well as low foreign exchange and tax losses.
Axiata's revenue during the quarter, however, decreased by around 1.6% to RM6.11 billion from RM6.21 billion in the same quarter last year due to the decline in all operating companies (OpCos) except for its operations in Bangladesh, Sri Lanka and the infrastructure segment.
The telco company however did not declare any dividend for 3QFY20.
Axiata Group stated that its increase in revenue was also contributed by the easing of movement control and strong cash flow position.
Axiata Group President and Chief Executive Officer, Tan Sri Jamaludin Ibrahim, said the fourth quarter of this year was seen as challenging again in some countries including Malaysia which had re-implemented the Movement Control Order (PKP).
"This situation has affected many businesses and customers as well as impacting our business as well. There is also fierce competition, especially in Indonesia, "he said.
Jamaluddin added that the company also recorded a cash surplus of RM10.7 billion following its strong performance, margin expansion and increased cash flow.
"After reducing the value of debt in the fourth quarter, we still expect to end this year with a healthy debt profile and cash balance of about RM6 billion. That situation will give us an advantage to weather the pandemic and economic scenario, "explained Jamaluddin.
During the break-in session this afternoon, Axiata shares jumped seven sen or 2.09% to RM3.42, bringing its market value to RM31.36 billion and about 2.67 million shares traded.
