KUALA LUMPUR (Feb 26): Axiata Group Bhd (KL:AXIATA) reduced its year-on-year net loss for the fourth quarter ended Dec 31, 2024 (4QFY2024), helped by lower impairment charges and foreign exchange gains.

Net loss for the three-month period came in at RM224.77 million against a net loss of RM695.02 million in 4QFY2023, according to the country’s largest telecommunications company by revenue in a filing on Wednesday.

Loss per share narrowed to 2.4 sen from 7.6 sen previously.

Revenue for the quarter, meanwhile, fell 8.93% to RM5.36 billion from RM5.89 billion in 4QFY2023, due to lower contributions from key business segments, including its infrastructure unit Edotco.

The group declared a second dividend of five sen per share, bringing the total dividend for FY2024 to 10 sen per share, unchanged from the prior year.

For FY2024, Axiata returned to a profit of RM946.82 million, compared with a net loss of RM1.99 billion in FY2023. Revenue edged up marginally to RM22.33 billion from RM22.32 billion. Earnings before interest, tax, depreciation and amortisation (Ebitda) from continuing operations stood at RM11.13 billion.

"Against FY2024 Headline KPIs, at constant rate, earnings before interest and tax (Ebit) growth of 39.3% is ahead of KPI, whilst revenue is marginally below at 1.9%," said Axiata in a separate statement.

The company, in which Khazanah Nasional Bhd owns a 36.72% stake, announced its headline KPI for FY2025, of which its revenue is targeted at a low single-digit growth, and its Ebit at a high single-digit.

Axiata attributed the turnaround in FY2024 to lower operating costs, foreign exchange gains, and the absence of significant impairments booked in the previous year. Axiata also recognised a RM306.10 million gain from the early redemption of debt.

On a quarter-on-quarter basis, Axiata turned to a net loss from a net profit of RM976.67 million in 3QFY2024, dragged by the RM356.4 million one-off net loss disposal for its Nepal subsidiary. Revenue, on the other hand, rose marginally from RM5.32 billion in the immediate preceding quarter.

“Axiata remains committed to refining its investment portfolio and governance model, prioritising assets with strong future potential to drive sustainable growth and long-term value creation,” Axiata chairman Tan Sri Shahril Ridza Ridzuan said in a statement.

Axiata group chief executive officer and managing director Vivek Sood said the company remains optimistic about its outlook, despite the heightened competition in Indonesia and Malaysia, uncertainties in Bangladesh, and funding requirements for Indonesia’s fibre expansion.

“We anticipate opportunities emerging from further currency stabilisation, synergy realisation from mergers and continued portfolio optimisation and asset monetisation,” Sood said.

At noon break on Wednesday, shares of Axiata were four sen or 1.95% higher at RM2.09, valuing the group at RM19.19 billion.

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