Axiata Group Swung to Profit in 2Q

   By Yantoultra Ngui

KUALA LUMPUR--Malaysian mobile phone-network operator Axiata Group Bhd. (6888.KU) swung to net profit in the second quarter.

Axiata made a profit of 204.09 million ringgit ($48.45 million) in the quarter compared with a net loss of MYR3.36 billion in the same period a year ago, its earnings release showed Thursday. The company attributed the result to the discontinuation of losses related to its investment in India.

However, the profit figure missed the consensus mean estimate for MYR225 million compiled by FactSet.

Revenue rose to MYR6.15 billion from MYR5.87 billion due to a better performance across all its operating companies save for its mobile operations in Malaysia and Nepal, the stock-exchange filing showed. That result also missed the consensus mean estimate compiled by FactSet, which was for MYR6.19 billion.

Axiata, which counts Malaysian sovereign-wealth fund Khazanah Nasional Bhd. as largest shareholder, said its board expects its 2019 performance to exceed its headline key performance indicators for earnings before interest, taxes, depreciation and amortization growth, as well as for return on invested capital.

Axiata said in notes accompanying its financial statement that it targets 5% to 8% Ebitda growth for the year and ROIC of 5.2% to 5.6%.

The company didn't give any updates on talks it had in May said it was holding with Norwegian telecom provider Telenor ASA (TEL.OS) over a possible non-cash merger of their Asian telecom and infrastructure assets.

Shares of Axiata were 0.4% higher at MYR5.02 prior to the earnings release.

Write to Yantoultra Ngui at yantoultra.ngui@wsj.com

(END) Dow Jones Newswires

August 29, 2019 01:21 ET (05:21 GMT)

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