Axiata Group Berhad (AXIATA) Q4 2023 earnings summary

Executive summary

• Combined reported FY23 revenue rose 8.2% to RM23.489bn and EBITDA rose 10.0% to RM10.560bn; total PATAMI was a loss of RM1.9948bn after impairments and disposal losses.

• Continuing-operations FY23 revenue was RM22,002.3m, EBITDA RM9,628.9m and EBIT RM2,428.9m; PAT was RM142.2m and PATAMI a loss of RM125.2m.

• Revenue ex-device growth of 7.8% and normalized EBIT growth of 18.4% exceeded FY23 targets; total FY23 DPS was 10 sen.

Financial highlights

• Combined reported FY23 revenue and EBITDA rose 8.2% and 10.0%; BDT depreciation reduced translated revenue by RM475m and EBITDA by RM236m.

• Continuing FY23 EBIT rose to RM2,428.9m from RM741.9m in FY22, supported by lower goodwill impairment; excluding goodwill impairment in both years, continuing PAT was RM182.7m and PATAMI a RM99.7m loss.

• FY23 total PATAMI loss of RM1.9948bn reflected RM2.2bn impairments/write-offs and a RM356.4m Ncell disposal loss; FY22 included a RM13.5bn Celcom disposal gain.

• Adjusted FY23 AOFCF rose to RM1.010bn from negative RM197m; underlying PATAMI fell 64.5% to RM536m, mainly on lower CDB results and higher interest expense.

• FY23 total revenue of RM23,489.5m and EBITDA of RM10,560.3m were down 14.6% and 15.1% YoY following Celcom’s disposal, on the financial-statement presentation basis.

Outlook and guidance

• FY24 continuing-operations revenue growth target is mid single digit and EBIT growth target is mid teens at constant rates; planned 2024 capex is RM6.1bn.

• FY23 revenue ex-device growth was 8.1% at actual currency and 7.8% at constant currency; normalized EBIT growth was 17.5% and 18.4%, respectively, exceeding targets.

• Myanmar infrastructure exit was classified as discontinuing operations, with the sale process begun and completion expected within 12 months of approval; a proposed Dialog–Airtel Lanka combination remained subject to agreements and approvals.