Axiata's Comeback

Axiata posted better-than-expected net profit for 2009. It reported a fourth-quarter net profit of 558.28 million ringgit ($164 million), compared to a net loss of 515.25 million ringgit in the year-ago period.Full-year net profit more than tripled to 1.65 billion ringgit, exceeding the average forecast of 1.365 billion ringgit by 20 analysts polled by Thomson Reuters.

Its Malaysian unit Celcom is the No.2 mobile phone brand and the biggest wireless broadband services provider in the country.Axiata also owns the “Hello” brand in Cambodia, the “Aktel” brand in Bangladesh and the “Dialog” brand in Sri Lanka.In Indonesia, it operates the “XL” brand via 86 percent-owned XL Axiata, Indonesia’s third-largest mobile phone operator.

Among its local rivals, DiGi operates only in Malaysia and Maxis Berhad houses just Maxis Communications’ Malaysian operations, making Axiata the only listed telecommunication company in the country that offers investors regional exposure.

Shares of Axiata have outperformed rivals so far this year with a 13 per cent gain. DiGi, controlled by Norwegian telecom firm Telenor, has gained 3 per cent and Maxis was up 2 per cent.

Controlled by Khazanah Nasional, the investment arm of the Ministry of Finance, Axiata has 120 million mobile subscribers across Asia.

“Key risks continued to be faced by our operating companies include increasing competition and regulatory challenges,” said Axiata.