PRESIDENT & GROUP CEO’S
BUSINESS REVIEW
In 2015, we have also set our sights on
becoming a New Generation Telco by
transforming our core business, expanding
to adjacent services and acquiring new core,
to reflect dynamic changes unfolding in the
digital, technology and telecommunications
space, and to respond to consumer trends
and demands. We will also stay committed
to our broader vision of Advancing Asia,
to exemplify our social role beyond our
commercial objectives to support our
Environmental, Social and Governance (ESG)
initiatives.
RESILIENCY AND DIVERSITY: REMAINING
STRONG AMIDST CHALLENGES
Benefiting froma resilient and diverse portfolio
of businesses spreading across key emerging
Asian markets and forex translation gains,
2015 revenue for the Group rose by 6.3%
to an all-time high of RM19.9 billion (USD5.1
billion) compared to 2014 revenue of RM18.7
billion (USD5.7 billion
4
). We also saw strong
revenue contributions from our OpCos across
the region with 63% of revenue for the Group
generated outside of Malaysia, reducing our
traditional dependence on our home market.
Earnings Before Interest, Tax, Depreciation
and Amortisation (EBITDA) grew by 4.1%
to RM7.3 billion (USD1.9 billion) but EBITDA
margin dropped to 36.6%. Profits After Tax
and Minority Interests (PATAMI) was up by
8.0% from RM2.4 billion (USD0.7 billion) to
record its highest ever at RM2.6 billion (USD0.7
billion), fuelled by stronger performance from
OpCos, tower sales gains and forex translation
gains. At constant currency
5
, EBITDA and
PATAMI would be RM6.8 billion (USD2.1 billion)
and RM2.4 billion (USD0.7 billion) respectively.
CONTINUED STEADY OPCOS
PERFORMANCE
Largely, our OpCos showed a mix of steady,
and for some, stellar operational performance.
Celcom’s overall recovery was hampered by
industry conditions, a flat growth market,
compounded by some remaining internal
challenges during the first half of the year.
It recorded normalised PATAMI of RM1.7
billion (USD0.4 billion), down 13.5% from the
previous year. PATAMI was impacted by one-
off expenses of RM53 million (USD13.6 million)
and also losses of RM71 million (USD18.2
million) was recognised for the year in new
start-up ventures which we had foreseen.
Celcom recorded its first revenue climb in the
fourth quarter of 2015, up by 1.0% after three
quarters of decline, with mobile data revenue
growth of 21% and mobile Internet revenue
growth of 48%. Moving forward, Celcom
is gearing its strategy to capture a more
sustainable customer base.
Dear Shareholders,
2015 was a milestone year for Axiata as we realised our vision of being a regional champion
despite global economic and business environment challenges. Axiata is now recognised
as one of the leading telecommunications groups in Asia. With a subscriber base of
approximately 275 million and revenue close to RM20 billion (USD5.1 billion) mark, we
now rank number two and number four respectively. Moving from the seventh and eighth
rank respectively in 2007, the calendar year before the ‘birth’ of Axiata
1
, against other
regional players within our footprint of Southeast Asia and South Asia. In terms of market
capitalisation, the Group now ranks fifth compared to seventh in 2007
2
. The Group and
some of its Operating Companies (OpCos) have won many global and regional awards in
significant areas
3
.
1
Known as Telekom Malaysia International (TMI) before 2008
2
Notes / assumptions on ranking: a) Axiata customer base, revenue and market capitalization are benchmarked against regional peers with footprint within the Southeast Asia and
South Asia region. b) Revenue adjusted based on LTM at 31 Dec 2015 and Forex rate conversion of average 1 Jan 2015 – 31 Dec 2015. c) Market Capitalization based on Bloomberg
forex adjusted to RM on last trading day closest to 31 Dec 2015.
3
Axiata’s list of awards are available on pages 46 and 47.
4
USD figures for 2014 results are based on the indicative exchange rate of 3.272.
5
2015 results at average 2014 exchange rates.
HIGHLIGHTS
Strong revenue contributions from
our
OpCos
across the region with
63%
of revenue for the Group
generated outside of Malaysia
EBITDA
RM7.3 billion
compared to RM7.0 billion in 2014
+4.1%
+6.3%
REVENUE
RM19.9 billion
compared to RM18.7 billion in 2014
All-time highest
PATAMI
RM2.6 billion
compared to RM2.4 billion in 2014
Highest ever
+8.0%
axiata group berhad | annual report 2015
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