Business

Axiata up on analysts’ expectations of stronger Q3 results

KUALA LUMPUR, Nov 28 — Axiata Group Bhd’s share price rose 21sen, or 4.8 per cent, to RM5.89 as at 11.49 am today as analysts expected a strong third-quarter financial results to be announced tomorrow.

An analyst said the growth was expected to come mainly from local subsidiary, Celcom, and Sri Lankan unit, Dialog Axiata plc.

“Axiata’s finance cost may be slightly lower upon refinancing Celcom’s debt with a RM5 billion sukuk in August,” he said.

However, the appreciation of ringgit against Sri Lankan rupee will squeeze earnings a little, he said.

The analyst said while revenue growth prospects looked good, correspondingly high earnings growth was a challenge as it remained uncertain how fast margins on data service will improve as contributions from segment grow.

Nonetheless, Axiata’s valuation remained cheaper than domestic peers, he said. — Bernama

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