PETALING JAYA: Axiata Group Bhd slipped into losses in the first quarter (1Q) ended March 31 after a weaker ringgit and the Sri Lankan rupee caused unrealised foreign-exchange (forex) losses of almost half-a-billion ringgit.

       Coupled with higher tax contributions due to the one-off Cukai Makmur, the telecommunication giant reported a net loss of RM42.97mil in the January-March 2022 period. In comparison, the group recorded a net profit of RM75.56mil in the previous corresponding quarter.

       Stripping out the forex losses, Axiata said its net profit would have increased by more than 100% to RM357.9mil, driven by higher revenue, partially offset by higher finance costs, higher taxes and lower one-off gains.

       Meanwhile, Axiata’s revenue in the quarter increased 6.69% year-on-year (y-o-y) to RM6.47bil from RM6.06bil in the previous corresponding quarter.

       Meanwhile, Axiata’s revenue in the quarter increased 6.69% year-on-year (y-o-y) to RM6.47bil from RM6.06bil in the previous corresponding quarter.

       The group said that its revenue was driven by all its operating companies (OpCos), except Ncell Axiata Ltd. Ncell is Axiata’s private mobile service provider operating in Nepal.

       Axiata further noted that the stronger revenue was achieved despite bracing against external impacts such as headwinds in Sri Lanka and macroeconomic uncertainties stemming from the slowing of major economies.

       One of the OpCos, Celcom Axiata Bhd, sustained its positive momentum as “revenue ex-device” climbed 5.2% y-o-y, driven by its prepaid business and contribution from new Enterprise Solution subsidiaries – Bridgenet Solutions and Infront Malaysia.

       Consequently, net profit grew more than 100%, while being partly offset by higher tax from the one-off Cukai Makmur.

       “Celcom remains committed to investing in modernising its widest network coverage to deliver reliable services and consistent performance, affordable to its customers, towards enabling improved connectivity and digital inclusion in Malaysia,” according to Axiata.

       Axiata did not declare a dividend for the quarter under review. Commenting on the group’s performance, Axiata president and group CEO Datuk Izzaddin Idris said the group had landed 1Q on a steady footing, given the challenging externalities.