Malaysia's Axiata Q1 profit rises 9.8 pct on forex gains

KUALA LUMPUR Tue May 27, 2014 7:05am EDT

KUALA LUMPUR May 27 (Reuters) - Axiata Group Bhd, Malaysia's biggest mobile phone operator by stock market value, said on Tuesday first-quarter net profit rose 9.8 percent year-on-year, reflecting foreign exchange gains and higher contributions from Cambodia and India.

Net profit reached 674.9 million ringgit in the quarter through March, Axiata said in a statement to the stock exchange. Revenue rose 0.7 percent from the same period a year before to 4.5 billion ringgit.

"The group expects to face continued challenges for the financial year ending Dec. 31, 2014 and careful execution of its business strategy remains a key focus," Axiata said.

"Amongst the key risks facing operating companies include increasing competition and regulatory challenges," it added.

For the full statement, please see: (Reporting by Yantoultra Ngui; Editing by David Holmes)