Annual Report 2010 - Axiata Group Berhad - Investor Relations

President & GCEO’s Business ReviewDifficult conditions did continue in Cambodia for Hello, operating in ahighly competitive market with nine operators.Our Indian and Singaporean affiliates, Idea and M1, continued theirstrong performances amidst tough competition. Idea in particular hasmanaged to navigate successfully through a second year of hypercompetition emerging as one of the best performers in an extremelychallenging market.The Group’s performanceresulted in strongbalance sheets, not onlyat Group level but allmajor OpCos. Thecontinued achievementsseen in 2010 haveenabled us to announcedividends at group levelas well as at XL andDialogThe Group’s performance resulted in strong balance sheets, not only atGroup level but all major OpCos. The continued achievements seen in2010 have enabled us to announce dividends at group level as well asat XL and Dialog.POSITIVE GROWTH TRENDS CONTINUE AT CELCOM AND XLMalaysiaEven in a mature market, Celcom saw a robust 8% growth in revenue,driven by mobile broadband and data, to RM6.9 billion. Non voice grew25% YoY and now contributes 33% to revenue from 29% YoY. Celcomdefended its market dominance in mobile broadband closing the year asthe undisputed leader with 857 thousand subscribers. The segmentcontributed 9% to revenue, a growth of 76% YoY.EBITDA for the period rose 13% to RM3.2 billion, from aggressive pursuitof smart spend initiatives and cost saving measures. Celcomalso continued to generate healthy cash balance and saw doubledigit PATAMI growth, the highest profitability to date, up 23% toRM1.9 billion.For 2011, Celcom will enhance its focus on mobile data, whilst maintainingleadership in mobile broadband. Alongside this, the company will bedriving greater cost efficiencies with a high focus on network infrastructuresharing. This has already started with the recent Memorandum ofUnderstanding (MoU) with TM. Before this, Celcom also signed a networkcollaboration agreement with DiGi Tel which aims to address theincrease of data capacity requirements.Axiata Group Berhad (242188-H) • annual report 2010 pg 20