KUALA LUMPUR: RHB Research Institute said Axiata's 67%-subsidiary, XL Axiata (XL) full year FY10 core net profit of Rp 3,035 billion (+>100% on-year) came in within its but above consensus full-year estimates at 104% and 107% respectively.
It said on Wednesday, Feb 2 the 4Q revenue grew 4.7% on-quarter mainly driven by strong data & VAS revenue (+18% qoq) and SMS (+10% qoq) growth. EBITDA margin rose 40bp to 53.3% due to continuous lean cost management.
XL added 1.9m prepaid subscribers in 4Q (3Q: +3.3m).'' Revenue growth moderating for XL with FY11 revenue growth guidance of in line or above the industry (which management estimates at 8%), compared to the 27% increase achieved in FY10. XL will commit to a minimum payout of 30% of normalised net profit of the previous year, with the intention to increase progressively the payout ratio in the future.
'Axiata's FY11-12 net profit forecasts raised by around 2% after revising XL's EBITDA margin assumptions upward from 50% to 52%. We revise our SOP fair value to RM5.75 (previously RM5.52) after: 1) upgrading earnings forecasts for XL; and 2) updating our valuation parameters (e.g. latest market prices and exchange rates),' it added.
It said on Wednesday, Feb 2 the 4Q revenue grew 4.7% on-quarter mainly driven by strong data & VAS revenue (+18% qoq) and SMS (+10% qoq) growth. EBITDA margin rose 40bp to 53.3% due to continuous lean cost management.
XL added 1.9m prepaid subscribers in 4Q (3Q: +3.3m).'' Revenue growth moderating for XL with FY11 revenue growth guidance of in line or above the industry (which management estimates at 8%), compared to the 27% increase achieved in FY10. XL will commit to a minimum payout of 30% of normalised net profit of the previous year, with the intention to increase progressively the payout ratio in the future.
'Axiata's FY11-12 net profit forecasts raised by around 2% after revising XL's EBITDA margin assumptions upward from 50% to 52%. We revise our SOP fair value to RM5.75 (previously RM5.52) after: 1) upgrading earnings forecasts for XL; and 2) updating our valuation parameters (e.g. latest market prices and exchange rates),' it added.
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