Disappointing 2018 first half results drag Axiata down on Bursa

Disappointing 2018 first half results drag Axiata down on Bursa

KUALA LUMPUR,. — Axiata Group Bhd’s shares on Bursa Malaysia were lower in early trade today, dampened by the disappointing first half results ended June 30, 2018 (1H18).

The stock fell 13 sen to RM4.59 as at 9.52am with 244,700 shares changing hands.

The telecommunications conglomerate on Friday, reported a 1H18 net loss of RM3.5 billion, mainly due to a one-off provision of loss on its investment in India amounting to RM3.4 billion.

This followed the completion of Idea Cellular’s (Idea) merger with Vodafone India, which resulted in Axiata’s stake in the former falling to below 10 per cent.

During the period, revenue weakened by 2.7 per cent to RM11.6b,

In a note, Public Investment Bank Bhd said its target price set for Axiata remained unchanged at RM5, while maintaining its “neutral” rating on the Group.

Kenanga Research has downgraded Axiata to “market perform” against “outperform” previously with a lower target price of RM4.80 from RM4.95 previously.

Meanwhile, Maybank IB Research has revised its FY18/19/20 core earnings on Axiata by +11 per cent/-14 per cent/-15 per cent.

It also lowered its target price to RM4.60 from RM4.80 previously, following earnings revisions, while downgrading the rating to “hold” from “buy.”

— Bernama