KUALA LUMPUR: Axiata Group Bhd
expects to meet its projected targets despite headwinds from increased competition in Indonesia and social unrest in Bangladesh, said group CEO and managing director Vivek Sood.
In his outlook, he said revenue growth is expected to meet its full-year target while earnings before interest and tax (Ebit) growth should remain ahead of headline key performance indicators (KPI).
"We remain focused on accelerating growth while executing Axiata’s value creation strategy," he said in a statement.
In the second quarter ended June 30, 2024, Axiata recorded a net profit of RM134.9mil, which was a swing into the black from a net loss of RM576.22mil in the year-ago quarter.
The group reported an earnings per share of 1.5 sen in 2QFY24, from a loss per share of 6.3 sen in 2QFY23.
Revenue, meanwhile, rose to RM5.76bil from RM5.59bil previously.
The board of directors declared a first interim dividend of five sen per share.
During the first half of the year, Axiata's net profit was RM194.92mil on revenue of RM11.42bil, against a net loss of RM502.37mil and revenue of RM10.59bil in 1HFY23.
In its breakdown, Axiata said 1HFY24 revenue growth was mostly contributed by strong performances from all its operating companies (opco), except Link Net and Dialog.
Ebit during the period jumped 40%, supported largely by XL, Smart and Robi from market repair and cost optimisation and growth in Edotco’s key markets.
Underlying profit after tax, amortisation and minority interests (Patami) surged over 100% as Ebit growth and higher share of associates outpaced the increase in net finance cost at XL, Edotco and Robi.
Operating free cashflow after lease payments grew more than 100% to RM677.4mil, largely supported by strong earnings before interest, taxes, depreciation and amortisation (Ebitda) growth of 18.7%.
Axiata chairman Tan Sri Shahril Ridza Ridzuan said Axiata continues to focus on capital allocation towards assets that hold future potential.
"The board remains steadfast in its support for the Axiata value creation strategy, which is pivotal to Axiata’s aspiration to be a sustainable dividend company," he said.
