PETALING JAYA: Telecommunications (telco) companies reported earnings in the recently concluded corporate results season were largely in line with expectations except for Axiata Group Bhd.
According to Affin Hwang Research, Axiata’s earnings were a negative surprise while the other players’ results were broadly in line with expectations.
“This was due to continued earnings disappointment from its key operating companies coupled with higher depreciation charges. Sector earnings are weaker both on a quarter-on-quarter and year-on-year basis dragged down by Axiata’s disappointing performance both regionally and locally (price competition),” Affin said.
Maxis, which has emerged as the seventh most valuable component stock of the FTSE Bursa Malaysia KL Composite Index (FBM KLCI), posted a decent set of results for the third quarter and regained some market share. It has a market capitalisation of RM45.06bil.
Digi saw its net profit rose to RM438.4mil from a year ago, despite a 3% drop in revenue to RM1.62bil TM’s earnings fell to RM160mil from RM166.87mil a year ago in the third quarter. Revenue was flat at RM2.92bil for the quarter.
Meanwhile, Axiata’s net earnings in the third quarter ended Sept 30 fell by 71.2% to RM256.56mil from a year ago while revenue grew by 2.8% to RM5.5bil.
PublicInvest said Celcom was the only operator posting lower customer base for both prepaid and postpaid segments.
Now who is to be blamed here? Choose one from these three, or choose all of them: