Mobile operator Axiata Group Bhd has posted what it describes as "fairy tale" financial results for 2009, thanks to growth in most of its main operations and foreign exchange gains.
Although it expects customers to make more calls and surf the Internet from their handphones this year as the global economy recovers, Axiata also thinks that the competition will be intense.
The group, which operates in 10 Asian countries, including Indonesia and Sri Lanka, plans to become the top regional mobile operator group by 2015.
Axiata posted a net profit of RM558.28 million in the quarter to December 31 2009, clawing back its net loss of RM515.25 million in the previous corresponding period.
Full-year net profit more than tripled to RM1.65 billion.
It also exceeded all its targets, or key performance indicators, last year, and turned free cash flow positive for the first time.
"It's a spectacular year. It's like a fairy tale results for us. We worked very hard to achieve these. However, for us to live happily ever after, we need to harness the foundations that we have built," group chief executive officer and president Datuk Seri Jamaludin Ibrahim said at a media briefing in Kuala Lumpur yesterday.
Celcom Axiata Bhd and PT XL Axiata in Indonesia continued to be the group's biggest income generator, collectively making up more than 80 per cent of sales and operating profit.
This year, Axiata plans to spend RM4 billion to RM4.5 billion to expand its networks. Last year, it spent RM3.4 billion.
The funds will also be used to expand its mobile broadband coverage, a business seen as the future growth driver.
To grow its mobile broadband business, the group will try to apply the formula that has made Celcom a market leader to its other regional units.
In terms of mobile broadband market share, XL ranks third in Indonesia with some 100,000 customers, while Dialog leads in Sri Lanka with some 45,000 customers.
"We believe there's a lot to be learnt from Celcom in terms of how they market the product, how they build the network," said Jamaludin.
Meanwhile, Axiata hopes to sell some of its non-core assets by the end of the first quarter.
Jamaludin stressed that such a sale would not directly impact the group's earnings significantly.
"The numbers are small, rather insignificant. We may not even need to change our annual reports. However, it will allow us to focus better in our job," he said.
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