Axiata Returns To The Black With Net Profit Of RM134.90 Mln In 2Q Fy2024

KUALA LUMPUR, Aug 28 (Bernama) -- Axiata Bhd has returned to the black with a net profit of RM134.90 million in the second quarter ended June 30, 2024 (2Q FY2024) from a net loss of RM576.22 million in 2Q 2023.

Revenue rose to RM5.76 billion from RM5.59 billion previously, mainly contributed by its operating companies (OpCos) except for mobile operations in Sri Lanka and fixed broadband operations in Indonesia, it said in a filing to Bursa Malaysia today. 

For the first half of FY2024 (1H2024), the group registered a solid performance with a net profit of RM194.93 million from a net loss of RM502.36 million last year, while revenue grew to RM11.42 billion from RM10.59 billion previously. 

In a statement, Axiata said year-to-date (YTD) revenue growth of 7.8 per cent was contributed by strong performance from all OpCos except PT Link Net Tbk and Dialog Axiata PLC.

It said the double-digit earnings before interest, tax, depreciation and amortisation (EBITDA) and earnings before interest and tax (EBIT) recorded growth of 18.7 per cent and 42.9 per cent, respectively, largely contributed by PT XL Axiata Tbk, Smart Axiata Company Ltd, Robi Axiata Ltd and EDOTCO Group Sdn Bhd. 

"Profit after tax and minority interests (PATAMI) increased by over 100 per cent, flowing through from EBIT, higher share of results of associates and lower foreign exchange losses, moderated by higher net finance cost and taxation," it said. 

Axiata group chief executive officer and managing director, Vivek Sood said despite the sociopolitical and macroeconomic volatilities, the group remained focused on driving growth and improving margins. 

“We have completed the Dialog-Airtel merger in Sri Lanka and initiated a proposed merger discussion between XL Axiata and Smartfren in Indonesia. 

"These moves are in line with our strategy of market consolidation towards three major telco operators in each of our markets, where Axiata’s operations either lead or are substantially scaled,” he said.

Vivek added that despite headwinds with recent increased competition in Indonesia and uncertainty due to recent developments in Bangladesh, the group anticipates its revenue growth to meet its full-year targets, while EBIT growth is expected to be ahead of headline key performance indicators. 

“Moving forward, we remain focused on accelerating growth while executing Axiata’s value creation strategy," he said. 

Following its performance, Axiata has declared a first interim dividend of five sen per ordinary share, with entitlement and payment details to be announced soon.

At lunch break, Axiata's share price rose one sen to RM2.45 per share with 3.04 million shares traded. 

-- BERNAMA