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

  • First Cambodian woman graduates from Japan’s NDA military academy

    A few years ago, Meach Sithyka Jessica became the first-ever Cambodian woman to graduate from the US Military Academy at West Point, and since then her courage and determination has served as an inspiration for other Cambodian women. Similarly, Ly Chansocheata became the first Cambodian

  • Construction begins on $1.5B Kampot seaport

    The International Multi-Purpose Logistics and Port Centre, principally invested by Kampot Logistics and Port Co Ltd and projected to cost $1.5 billion, has officially broken ground in Bokor town, Kampot province. The multi-purpose logistics and port centre, located in Prek Tnaot commune, will be built on

  • Cambodia eyes key role in electronics, auto hubs in SEA

    Two roadmaps, part of the LDC’s economic diversification plan, were designed to see it through its migration process, but experts say the journey might be arduous, particularly in the presence of two established hubs in the region By 2028, Cambodia hopes to have exited the

  • Hun Neng, lawmaker and PM’s brother, passes away aged 72

    Hun Neng, chairman of the 4th Commission of the National Assembly, has passed away from heart disease at the age of 72 on the afternoon of May 5, according to the Ministry of Information. Hun Neng is the older brother of Prime Minister Hun Sen, and was

  • CCC team off on US business trip

    The Kingdom’s leading economists and private sector representatives have called on the US to renew its tax preferential status for Cambodian exports, as a Cambodia Chamber of Commerce (CCC) delegation departed for a weeklong business visit to the US, where they will meet with

  • PM meets with US business giants

    Prime Minister Hun Sen has met with a number of major US companies who have expressed interest in investing in Cambodia, in a meeting convened by the US-ASEAN Business Council (US-ABC). A delegation of companies – including Amazon, Meta, Chevron, ConocoPhillips, ExxonMobil, Ford, Visa and Pernod