Axiata Group Berhad (AXIATA) Q3 2024 earnings summary

Executive summary

• Year-to-date revenue grew 3.3% to RM16.74 billion, with EBITDA up 14.6% and EBIT up 37.7%, driven by most operating companies except Link Net, Dialog, and Robi, which faced currency and market headwinds.

• PATAMI rose to RM1.1 billion, more than doubling year-over-year, supported by operational performance, forex gains, and a gain on early debt redemption.

• Net debt to EBITDA improved to 2.59x from 3.36x at the start of the year, mainly due to debt repayment and a stronger ringgit.

• Strong OpEx and CapEx discipline led to EBIT growth of 37.7% year-to-date, with AOFCF more than doubling to RM1.9 billion.

• Discontinued operations contributed PAT of RM165.4 million, reversing prior year losses due to asset impairments in Nepal.

Financial highlights

• YTD 2024 revenue: RM16.74 billion (up 3.3%); EBITDA: RM8.20 billion (up 14.6%); EBIT: RM2.58 billion (up 37.7%); PATAMI: RM1.09 billion (up over 100%).

• AOFCF more than doubled to RM1.94 billion, driven by EBITDA growth and CapEx optimization.

• Forex gains of RM432 million year-to-date, compared to a loss of RM261 million last year.

• Total borrowings reduced by RM2.6 billion to RM22.2 billion, aided by EMTN bond redemption and currency effects.

• Interim dividend of 5.0 sen per share (RM459.1 million) paid in October 2024.

Outlook and guidance

• Revenue growth expected to be in line with FY24 KPIs, EBIT growth ahead of targets, and CapEx for FY24 likely below RM6.1 billion guidance.

• Continued focus on sustainable dividend growth, with a minimum commitment of RM0.10 per share.

• Board expects continued positive performance, barring macroeconomic challenges in Sri Lanka and Bangladesh.

• Ongoing market headwinds in Indonesia, Bangladesh, and Sri Lanka, with a cautious approach to CapEx and marketing in affected regions.