Axiata Group Berhad - Annual Report 2016

Axiata Group Berhad | Annual Report 2016

FINANCIAL STATEMENTS

230

NOTES TO THE FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2016

38. SEGMENTAL REPORTING

By key operating companies of the Group

Management has determined the operating segments based on the reports reviewed by the Board of Directors (Chief Operating decision maker).

The Board of Directors considers the business from a geographic perspective. The Group’s operating companies operate in many countries as shown

in Note 40 to the financial statements. Accordingly, the Group’s operations by key operating companies are segmented into these main geographic

segments: Malaysia, Indonesia, Bangladesh, Sri Lanka, Nepal, Cambodia and Others. Others comprise of investment holding entities and other

operating companies in other countries that contributed less than 10% of consolidated revenue.

The reportable segments derive their revenue primarily from the provision of mobile services, lease and services of passive infrastructure, and others

such as provision of interconnect services, pay television transmission services and provision of other data services. Revenue is based on the country

in which the customers are located.

The Board of Directors assesses the performance of the operating segment, before its respective tax charge or tax credits, based on a measure

of EBITDA. EBITDA is derived after operating revenue less other operating costs, domestic interconnect and international outpayment, marketing,

advertising and promotion, and staff costs.

Malaysia

RM’000

Indonesia

RM’000

Bangladesh

RM’000

Sri Lanka

RM’000

Nepal

RM’000

Cambodia

RM’000

Others

RM’000

Consolidation

adjustments/

eliminations

RM’000

Total

RM’000

Financial year ended

31 December 2016

Operating revenue:

Total operating revenue

6,613,328 6,637,183 2,783,435 2,459,995 1,629,543 1,088,840 992,715

- 22,205,039

Inter-segment*

(8,636)

(33,013)

(41)

(37,562)

(16,507)

(10,442)

(533,446)

(639,647)

External operating revenue

6,604,692 6,604,170 2,783,394 2,422,433 1,613,036 1,078,398 459,269

- 21,565,392

Results:

EBITDA

2,304,248 2,612,231 758,352 828,420 1,021,197 538,012

(31,641)

(18,171) 8,012,648

Finance income

76,140

63,313

5,848

10,408

4,579

8,380 132,883

(118,157)

183,394

Finance expense

(189,153)

(607,202)

(53,721)

(44,288)

(18,988)

(5,227)

(395,704)

113,099 (1,201,184)

Depreciation of PPE

(785,189) (2,527,400)

(821,735)

(432,202)

(167,603)

(149,244)

(98,675)

17,801 (4,964,247)

Amortisation of intangible

assets

(78,130)

(67,819)

(141,557)

(29,847)

(77,655)

(4,385)

(24,869)

(206,399) (630,661)

Joint ventures:

- share of results (net of tax)

(2,775)

(79,213)

(13,854)

(95,842)

Associates:

- share of results (net of tax)

(61,318)

(230)

192,672

131,124

- loss on dilution of equity

interests

(5,398)

Impairment of PPE, net of

reversal

(19,965)

(2,032)

(1,338)

(25,886)

(13,145)

(62,366)

Other non-cash income/

(expenses)

25,303 679,918

(13,729)

(31,912)

24,793

(34,821) (1,114,001)

236,561 (227,888)

Taxation

(312,858)

59,070

62,944

(43,034)

(191,991)

(74,273)

(58,737)

76,457 (482,422)

Segment profit/(loss) for the

financial year

976,268 112,933 (205,630)

255,977 568,446 278,442 (1,430,469)

101,191 657,158

Share of associates' results contributed by Idea Cellular Limited (RM65.1 million) and M1 Limited (RM128.8 million).

Inter-segment operating revenue has been eliminated in arriving at respective segment operating revenue. The inter-segment operating

revenue was entered into in the normal course of business and at prices negotiated and agreed between the parties.