Axiata Group Berhad (AXIATA) Q4 2024 earnings summary

Executive summary

• FY2024 saw strong operational performance, with successful mergers such as the Airtel-Dialog merger in Sri Lanka and the customer migration from Link Net to XL in Indonesia, positioning for future synergies in 2025.

• Maintained leading or strong market positions across key geographies, with robust profit growth at Smart, XL, Robi, and edotCo, and disciplined cost management driving higher EBIT margins.

• PATAMI for continuing operations more than doubled to RM946.8 million, with revenue up 1.9% and EBIT up 48% year-over-year, driven by all OpCos except Link Net and Dialog.

• Net debt/EBITDA improved to 2.74x from 3.36x, reflecting RM1.7 billion in borrowings reduction and strong OpCo deleveraging.

• Focused on portfolio rationalization, value monetization, and maintaining a resilient balance sheet, with ongoing efforts to reduce debt and optimize capital allocation.

Financial highlights

• FY2024 revenue was RM22,335 million, up 1.9% year-over-year on a constant currency basis, with EBITDA rising 12.3% to RM11,129 million and EBIT more than doubling to RM3,788 million.

• PATAMI grew over 100% to RM946.8 million, driven by EBIT growth, lower finance costs, and foreign exchange gains.

• AOFCF surged to RM2.3 billion, supported by EBITDA growth at XL and edotCo, lower capex, and reduced finance costs.

• CapEx reduced to RM4.1 billion from RM6.1 billion, below guidance.

• Declared total dividend of 10 sen per share, fully funded by OpCo cash flows.

Outlook and guidance

• FY2025 guidance targets low single-digit revenue growth and high single-digit EBIT growth, assuming no major transactions.

• CapEx for 2025 guided at RM4.4 billion, with focus on operational excellence and market repair.

• Guidance will be revisited upon completion of the Indonesia merger.

• Strategic focus on consolidation, operational excellence, and yield improvement, with investments prioritized in Malaysia and emerging markets.