Axiata CEO sees single-digit growth for FY2024 revenue

TheEdge Thu, Feb 22, 2024 06:22pm - 2 months View Original


KUALA LUMPUR (Feb 22): Axiata Group Bhd is expecting to maintain its “single-digit” revenue growth in the financial year ending Dec 31, 2024 (FY2024), said its chief executive officer and managing director Vivek Sood at a virtual press conference post-4Q results announcement.

However, Sood pointed out that Axiata has managed to exceed its growth target for earnings before interest and taxes (Ebit). The telco achieved a mid-teen Ebit growth in 2023.

“The improved performance on all our continuing businesses except Link Net. So I think we should be able to improve the performance going into 2024,” Sood explained.

Axiata posted a net loss of RM695.02 million for the fourth quarter ended Dec 31, 2023 (4QFY2023), compared with a net profit of RM9.95 billion in the same quarter a year ago.

Quarterly revenue grew 7.24% to RM5.79 billion from RM5.40 billion in 4QFY2022.

For the full year of FY2023, the telco group recorded a net loss of RM2 billion versus a net profit of RM9.75 billion in FY2022. Meanwhile, its annual revenue grew 9.9% to RM22 billion, from RM20.02 billion in the previous year.

Despite the losses, Axiata declared a second interim dividend of five sen per share, bringing total dividends for FY2023 to 10 sen per share, compared with 14 sen in FY2022, including a special dividend of 9.5 sen.

Nonetheless, Axiata has narrowed its quarterly net loss quarter-on-quarter (q-o-q) against RM797.41 million in 3QFY2023. Revenue rose slightly by 1.72% to RM5.79 billion, as compared to RM5.70 billion in 3QFY2023.

The group attributed its improved earnings to higher revenue from its continuing operations, driven by higher contributions from its OpCos brand, except for mobile operations in Sri Lanka and Bangladesh.

Profit after tax and minority interest for its continuing operations also doubled to RM48.5 million year-on-year (y-o-y) versus a loss of RM142.16 million last year, mainly driven by higher toplines and share of profits from associates namely CelcomDigi Bhd, partially offset by impairment of goodwill of infrastructure segment.

Axiata shares fell three sen to RM2.76 on Thursday, for a market capitalisation of RM25.33 billion.

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