Logo of Phnom Penh Post newspaper Phnom Penh Post - Axiata battered by forex rates, buoyed by Smart growth

Axiata battered by forex rates, buoyed by Smart growth

Axiata battered by forex rates, buoyed by Smart growth

Malaysia-based Axiata Group saw profits decline sharply in 2016 despite another strong year for its Cambodian subsidiary, Smart Axiata, according to the company’s year-end report.

Overall revenue for the Axiata Group grew by 8.5 percent year-on-year reaching $4.8 billion in 2016. However, profits decreased by 75 percent over the same period due to a depreciation of the Malaysian ringgit, which led to substantial forex losses, the company said in the report. Overall forex losses reached $154 million last year, bringing total profits down to $113.5 million.

“FY2016 has been a challenging year for the Group, adversely impacted by weaker performance in Malaysia, Indonesia, Bangladesh, India as well as losses in digital ventures and forex,” the report read.

“However, the Group’s performance was cushioned by the consolidation of Ncell in Nepal on 11 April 2016 and continued excellent performance from its operations in Sri Lanka and Cambodia.”

Smart Axiata, the Group’s Cambodian mobile network operator, reported strong growth in 2016, according to the report. The firm’s gross revenue grew by 20 percent to $245 million and profit after tax grew by 19.8 percent, reaching $62 million. The strong performance was partly due to Smart riding a surge in data subscriptions, which increased by 25.4 percent to reach 3.8 million subscribers last year, the figures showed.

Smart’s revenue from data increased by 48.6 percent in 2016, with mobile data accounting for 42.3 percent of the company’s total revenue.

“Cambodia continues its growth momentum for the year, registering strong growth of 20 percent or 13 percent at constant currency in gross revenue driven especially by data revenue segment,” the report added.

MOST VIEWED

  • Seven positive for Covid-19, Hun Sen confirms local transmission

    Prime Minister Hun Sen announced that there has been local community transmission of Covid-19. However, he urged the people not to panic even though the Ministry of Health announced the discovery of seven new cases on Sunday. Among the victims are Chhem Savuth, the director-general

  • Cambodia at ‘most critical moment’, Hun Sen warns

    Prime Minister Hun Sen said the first community transmission of Covid-19 in Cambodia has led the country to the “most critical moment” that warranted urgent, large-scale operations to contain the pandemic. Hun Sen, who confirmed the first local transmission on November 28, said the source of

  • PM confirms community transmission, calls for unity

    Prime Minister Hun Sen has called on the public to stay calm, unite and follow the Ministry of Health guidelines after the wife of a senior official tested positive for Covid-19 in the Kingdom’s first case of community transmission. The case has drawn criticism

  • Over 110 garment factories close

    A government official said on November 22 that at least 110 garment factories had closed in the first nine months of the year and left more than 55,000 workers without jobs – but union leaders worry those numbers could be much higher. Ministry of Labour and Vocational Training undersecretary

  • Singapore group seeks $14M in damages from PPSP over ‘breach of contract’

    Singapore-based Asiatic Group (Holdings) Ltd is seeking a minimum of $14.4 million relief from Cambodia Securities Exchange (CSX)-listed Phnom Penh Special Economic Zone Plc (PPSP) for allegedly breaching a power plant joint venture (JV) agreement. Asiatic Group’s wholly-owned Colben System Pte Ltd and 95 per

  • PM vows to protect Hun family

    Prime Minister Hun Sen has vowed to continue his fight against opposition politicians who he said intend to smash the Hun family. Without naming the politicians but apparently referring to former leaders of the Supreme Court-dissolved Cambodia National Rescue Party (CNRP), Hun Sen said there