KUALA LUMPUR (May 29): Axiata Group Bhd (KL:AXIATA), Malaysia’s biggest mobile carrier by revenue, said its first quarter net profit fell 19% from a year earlier mainly due to higher foreign exchange losses and finance costs.
Net profit for the three months ended March 31, 2024 (1QFY2024) was RM60.03 million compared to RM73.85 million over the same period a year earlier, Axiata said in an exchange filing. Quarterly revenue increased 13% year-on-year to RM5.66 billion from RM5.00 billion.
Nonetheless, the group has snapped its streak of losses, during which it posted three consecutive quarterly losses: RM695 million in 4QFY2023, RM797.4 million in 3QFY2023, and RM576.2 million in 2QFY2023.
Axiata has attributed its revenue growth to "excellent performance" from all operating companies except for Link Net, which recorded lower enterprise revenue.
Meanwhile, it said its earnings before interest, tax, depreciation and amortisation (Ebitda) — which grew 25.4% year-on-year — was largely contributed by XL and Robi due to data revenue growth and cost optimisation, coupled with higher co-location and lower manpower cost at Edotco.
The telco did not propose any dividend for the quarter under review.
“On balance, the board of directors believe that the group’s performance for the financial year ending December 2024 to be broadly in line with its targets,” Axiata said. The telco previously announced “mid-single-digit” revenue growth and a “mid-teens” increase in earnings before interest and tax.
"In recent months, we have demonstrated our commitment to our strategic focus and capital allocation priorities, with the upcoming merger in Sri Lanka between Dialog Axiata and Bharti Airtel," said Axiata's group chief executive officer and managing director Vivek Sood.
"Meanwhile, we are executing on a strategic and structural shift in Indonesia to transform Link Net into a FibreCo and XL into a converged ServeCo, along with exploring a proposed merger of XL and Smartfren," he said in a statement on Wednesday.
Shares of Axiata fell by 10 sen or 3.52% to RM2.74 at Wednesday's market close, valuing the group at RM25.16 billion. Year-to-date, the counter has climbed 14.2%.