Axiata Group Berhad (Axiata) announced its financial results for the fourth quarter and fiscal year 2024, reflecting a profit that has more than doubled, reaching MYR 946.8 million.
XL, EDOTCO, Robi, and Smart all achieved record profits for the Group despite facing challenges in the market. Revenue grew by 1.9% on an underlying basis. EBITDA and EBIT increased by 15.3% and 48.0% respectively, driven by all operating companies (OpCos) except Link Net and Dialog.
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Group Performance
PATAMI increased by over 100% to MYR 946.8 million, mainly due to EBIT growth, lower net finance costs from the partial early redemption of USD 272.1 million in EMTN, and foreign exchange gains compared to losses in FY23. However, this increase was offset by taxation and a lower share of results from associates.
The Group outperformed its key performance indicators with EBIT growth of 39.3%, although, revenue growth of 1.9% was slightly below expectations. The CapEx for FY24 reached MYR 4.1 billion (lower than the guidance of MYR 6.1 billion). In the fourth quarter, compared to the third quarter, the Group's revenue increased by 1.0%, reaching MYR 5.4 billion. EBITDA grew by 2.4%, reaching MYR 2.7 billion, while EBIT increased by 14.2%, reaching MYR 931.5 million.
However, underlying PATAMI declined by 34.7% to MYR 149.0 million due to increased tax expenses. XL saw a QoQ revenue growth of 8.7%, driven by the ‘Mobile’ and ‘Enterprise’ segments. EBITDA grew by 5.6%, while EBIT grew by 20.0% and PATAMI surged by 69.7%. Robi experienced a QoQ revenue decline of 4.8% due to lower voice calls, while PATAMI surged by 58.9% in Q424.
Dialog's revenue grew by 6.9% QoQ, with EBITDA and EBIT also increasing significantly. Smart's revenue grew by 3.7% QoQ, driven by prepaid revenue. EBITDA remained flat, while EBIT dipped due to higher D&A. PATAMI also stagnated due to finance costs in Q424. Link Net's revenue decreased by 7.8% QoQ, while EDOTCO's revenue decreased by 1.0%. Boost saw a significant increase in revenue, while ADA also experienced revenue growth of 10.6%.
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Refining Commitments
Chairman of Axiata, Tan Sri Shahril Ridza Ridzuan, expressed the Group's commitment to refining its investment portfolio and governance model. He stated, “The Group is pleased to report that Axiata remains committed to refining its investment portfolio and governance model, prioritizing assets with strong future potential to drive sustainable growth and long-term value creation. The Board remains steadfast in supporting Axiata’s aspiration to be a sustainable dividend company, while building lasting value for shareholders.”
The Group's CEO and Managing Director, Vivek Sood, highlighted the achievements in 2024 and the strategic direction for the future, emphasizing sustainable growth and value creation for shareholders.
2024 was a pivotal year as we advanced our Axiata 5*5 growth strategy, securing leadership positions in Malaysia, Cambodia, and Sri Lanka while maintaining a solid second-place standing in Bangladesh. Market consolidation should unlock synergies, improve market structure, and create a more sustainable position, reinforcing our competitive edge.
He also added that the XL Axiata-Smartfren merger is expected to be completed in Q2 2025, which will result in the Group’s markets transitioning to a three-player structure. Axiata will hold a market share of more than 25% in each market. Despite facing challenges such as increased competition in Indonesia and Malaysia, uncertainties in Bangladesh, and the need for funding for Indonesia's fiber expansion, the Group remains optimistic.
“We believe that opportunities will arise from currency stabilization, synergy from mergers, and optimizing our portfolio and assets. These consolidations show our dedication to creating sustainable value for shareholders and solidifying Axiata's position as a leading telecommunications company. We aim to accelerate growth through expanding our digital business and enterprise solutions. As we evolve into a converged connectivity group, our focus remains on achieving sustainable growth driven by yields,” he concluded.
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