AXIATA ... Jun 09

Mobile phone operator - AXIATA GROUP (formerly TM INTERNATIONAL) reported a sharp drop for 1QE Mar 31, 2009 Net Profit to RM63.9m from RM498m last year. The sharp fall in Net Profit was due to weaker overseas operations and forex losses. Revenue was up 5.4% to RM2.87 bil.

AXIATA - a GLC - which owns mobile assets in Indonesia, Sri Lanka and India, said its annual results would be in line with key performance indicators (KPIs) announced Apr 2009 but analysts have said the KPIs, which include 4-6 per cent growth in EBITDA (earnings before interest, tax, depreciation and amortisation), were lower than expected.

TRANSLATION LOSSES
The Company said the Ringgit's moves against regional currencies hit its translated revenue, which would otherwise have grown by 7.7%.

AXIATA's LISTING RAISED RM5.25 BIL TO FUND PURCHASE OF OVERSEAS TELCOs
AXIATA raised RM5.25 bil from shareholders in Apr 2009 to reduce debt and fund its fast-expanding overseas operations. AXIATA has controlling stakes in Indonesia's EXCELCOMINDO and Sri Lanka's DIALOG TELEKOM. In Jul 2009, it bought a 15% stake in IDEA CELLULAR - India's fifth-largest mobile operator, for about USD1.5 bil (RM5.32 billion).

A REUTERS report May 19, 2009 said that analysts believe that AXIATA offers good long-term growth potential given its exposure to growing Asian mobile markets, but its near-term earnings outlook is expected to remain volatile due to currency swings and regional political risk.