Axiata returned to the black in the third quarter with a net profit of RM976.67mil from a net loss of RM797.41mil a year ago.
KUALA LUMPUR: Axiata Group Bhd
expects to achieve full-year revenue growth targets, with earnings before interest and tax (Ebit) growth anticipated to exceed headline key performance indicators for the financial year ending Dec 31, 2024, despite operating in a challenging macroeconomic environment.
This was after the group saw a strong operational performance on the back of capital expenditure, operational expenditure and balance sheet discipline.
Axiata’s key performance indicators for 2024 include achieving revenue growth in the mid-single digit and Ebit growth in the mid-teens.
For the third quarter ended Sept 30, 2024 (3Q24), Axiata returned to the black with a net profit of RM976.67mil from a net loss of RM797.41mil a year ago despite posting a marginally lower revenue of RM5.32bil versus RM5.62bil previously.
Earnings per share rose to 10.6 sen against a previous loss per share of 8.7 sen.
Meanwhile, CelcomDigi Bhd declared a 3.6 sen dividend per share for 3Q24 – the highest since the merger between the telco operations of Celcom Axiata Bhd and Digi.Com Bhd.
Axiata said the improved performance was attributed to higher finance income, share of results from associates and improved foreign-exchange gains.
For the nine-month period, Axiata’s net profit was RM1.17bil compared with a net loss of RM1.3bil a year earlier, while revenue rose to RM16.74bil from RM16.21bil.
According to the company, its year-to-date (y-t-d) revenue growth of 3.3% was contributed by all operating companies except Link Net, Dialog and Robi.
Meanwhile, the group’s earnings before interest, tax, depreciation and amortisation (Ebitda) and Ebit grew 14.6% and 37.7%, respectively.
Its net debt and Ebitda improved to 2.59 times in 3Q24 from 2.88 times in the previous quarter, and 3.36 times in 4Q23.
In a statement, Axiata noted that the y-t-d improvement is supported by a reduction in borrowings and leases, as well as an uplift from Ebitda growth of 14.6%, while operating free cash flow after lease payments increased to RM1.9bil.
Chairman Tan Sri Shahril Ridza Ridzuan said the group reported strong financial results from all three core business segments – digital telcos, infrastructure and digital businesses.
“Axiata remains committed to strengthening the business by optimising use of capital and improving operational efficiencies.
“The group will continue to focus on optimising our portfolio of investments as a driver for future value growth,” the chairman added.
Meanwhile, group chief executive officer and managing director Vivek Sood said the group remained optimistic while acknowledging challenges such as heightened competition in Indonesia and Malaysia, uncertainties in Bangladesh and funding requirements for fibre development in Indonesia.
“Key milestones include the completion of the Dialog-Airtel merger in Sri Lanka and advancing potential merger discussions between XL Axiata and Smartfren in Indonesia, in line with our market consolidation strategy.
“In September, we completed our delayering strategy in Indonesia with the transfer of customers from Link Net to XL,” he noted.
“This firmly establishes Link Net as a FibreCo and XL as a ServeCo, enabling both entities to scale, accelerate their organisational agility and maximise value.
“We foresee potential opportunities from stabilising currencies, synergy extraction from merged companies and sustained benefits from portfolio optimisation and asset monetisation,” he said.
