Axiata to double dividend on higher Q2 profit

Publish date: Thu, 30 Aug 2012, 03:48 PM
Axiata Group Bhd, Malaysia's second-biggest mobile-phone operator by market value, said it plans to double its dividend payout after reporting second-quarter profit that beat analysts' estimates.

Net income climbed 0.5 per cent to RM666.6 million (US$213 million), or 8 sen per share, in the three months ended June 30 from RM663.1 million, or 8 sen per share, a year earlier, the company said in a stock exchange filing in Kuala Lumpur today. That beat a mean estimate of RM645.7 million by three analysts in a Bloomberg News survey.

Axiata will pay an interim dividend of 8 sen per share, up from 4 sen a year earlier, according to the statement. The Kuala Lumpur-based company started declaring dividends last year after previously retaining profits as it expanded abroad. It currently owns controlling stakes in mobile operators in Indonesia, Sri Lanka, Bangladesh, Cambodia, in addition to strategic shareholdings in India and Singapore.

"I'm very happy with the continued strong results," Chief Executive Officer Jamaludin Ibrahim said in a separate statement. "In the second half of the year, we will be focusing on group initiatives concentrating on data strategy as we continue to prepare for this growth segment."

Axiata Shares rose 0.2 per cent to RM6 at 2:49 p.m. after announcing its earnings during the midday break. The stock has risen 16.7 per cent this year, outperforming a 7.5 per cent gain in the benchmark FTSE Bursa Malaysia KLCI Index.

Revenue for the three months rose 9.3 per cent to RM4.4 billion, the company said. Higher earnings from Malaysia were partially eroded by foreign exchange losses in Indonesia and Sri Lanka, it said. Net contributions from associate companies fell. -- Bloomberg

Labels: AXIATA

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ledzepp

Not much boost to share price despite a sterling performance in Q2. Dividend only 8 sen. If this is Digi's result, they will pay 35sen! Wake up Axiata

2012-08-30 16:46

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