Search

Search form

Logo of Phnom Penh Post newspaper Phnom Penh Post - Hello revenues slide 17.4pc

Hello revenues slide 17.4pc

Hello revenues slide 17.4pc

090828_14
A man rides a scooter past a Hello mobile phone subscription office last month in Phnom Penh. BLOOMBERG

Kuala Lumpur-based Axiata, the parent company of Hello, blames highly competitive Cambodia mobile market for drop in second-quarter income

HELLO'S revenues fell 17.4 percent in the second quarter on increased competition in the sector, the mobile-phone operator's majority stakeholder, Axiata, announced in a statement Thursday.

While the Kuala Lumpur-based company recorded a 44 percent rise in net profit overall to 526.8 million ringgit (US$149 million) in the quarter up to the end of June, its Cambodia operations suffered from a "challenging" business environment, the statement said.

"Major operators are facing intense competition on pricing, and new operators are offering free SIM cards and free minutes to capture market share," it stated.

Telekom Malaysia International (Cambodia), which operates under the brand name Hello, is among the top three operators in the Kingdom in a market that has increased to nine companies this year.

Hello's Cambodia CEO, Simon Perkins, said the operator had reduced tariffs to compete with the rest of the sector, citing a difficult start to 2009.
"[Reduced rates] had an effect on our revenue for Q2," Perkins said, declining to break down the company's revenues for the period.
Thursday's statement by Axiata did not disclose financial data for the Kingdom.

Millicom International SA, the majority shareholder in market leader Mobitel, which recently announced that it planned to sell its stake to local partner Royal Group, has also cited an overly competitive market for downward pressure on its revenues for this year, although the Royal Group has denied any impact on its own finances.

In a bid to compete with promotions including free SIMs, Perkins said Hello had offered customers refill bonuses. He added that further tariff changes would be announced next week "which will benefit ... existing customers and further reward them for loyalty, and appeal to new customers".

Hello controls approximately 15 percent of the Cambodian market, according to private-sector data.

Perkins said the company was already seeing "a good improvement in revenue in Q3" on the back of launching BlackBerry push email services earlier this year, which has been followed by the introduction of the 3G BlackBerry Bold handset that went on sale Thursday.

"We have had to increase our stock of handsets to keep up with the demand," he said.

Regionally, Axiata announced it had reached nearly 100 million users in markets that include Bangladesh, Cambodia, Indonesia, Malaysia and Sri Lanka, representing growth of close to 100 percent since the second quarter of last year.

Axiata's shares rose 0.7 percent on the Kuala Lumpur stock exchange Thursday.

RECOMMENDED STORIES

  • Rainsy and Sokha ‘would already be dead’: PM

    Prime Minister Hun Sen on Sunday appeared to suggest he would have assassinated opposition leaders Sam Rainsy and Kem Sokha had he known they were promising to “organise a new government” in the aftermath of the disputed 2013 national elections. In a clip from his speech

  • Massive ceremony at Angkor Wat will show ‘Cambodia not in anarchy’: PM

    Government officials, thousands of monks and Prime Minister Hun Sen himself will hold a massive prayer ceremony at Angkor Wat in early December to highlight the Kingdom’s continuing “peace, independence and political stability”, a spectacle observers said was designed to disguise the deterioration of

  • PM tells workers CNRP is to blame for any sanctions

    In a speech to workers yesterday, Prime Minister Hun Sen pinned the blame for any damage inflicted on Cambodia’s garment industry by potential economic sanctions squarely on the opposition party. “You must remember clearly that if the purchase orders are reduced, it is all

  • Ex-RFA journos accuse outlet

    Two former Radio Free Asia journalists held a press conference yesterday claiming they are each owed $28,000 by the US-funded radio broadcaster, which shuttered its in-country operations in September amid a government crackdown on independent media. The journalists, Sok Ratha and Ouk Savborey, maintained they organised