AXIATA RETURNS TO THE BLACK WITH RM946.82 MLN NET PROFIT IN FY2024

KUALA LUMPUR, Feb 26 (Bernama) -- Axiata Group Bhd returned to the black after posting a net profit of RM946.82 million in the financial year ended Dec 31, 2024 (FY2024), against a net loss of RM1.99 billion in the FY2023.

It said the increase in net profit was driven by higher earnings before interest, taxes, depreciation, and amortisation (EBITDA), lower depreciation and amortisation, foreign exchange gains in FY2024 compared to foreign exchange losses in FY2023, and an RM306.1 million gain on the early redemption of debt.

“This was partially offset by a lower share of associates and joint venture results, mainly from CelcomDigi Bhd (CDB), and higher taxes.

“Revenue soared 1.9 per cent to RM22.33 billion in FY2024, up from RM22.32 billion in FY2023, due to growth across all operating companies except for digital telco operations in Sri Lanka and fixed broadband operation in Indonesia,” the group said in a filing with Bursa Malaysia today.

The multinational telecommunications group reported robust growth in its financial performance, driven by an increase in EBITDA, which rose by 12.3 per cent to RM11.13 billion, and a more than 100 per cent increase in earnings before interest and taxes (EBIT), reaching RM3.79 billion.

This improvement primarily resulted from lower operating costs due to their cost optimisation efforts.

For the fourth quarter (4Q) ended Dec 31, 2024, its net loss narrowed to RM224.77 million from RM695.02 million a year ago, while revenue eased to RM5.36 billion from RM5.89 billion previously.

The group declared a second dividend per share of 5.0 sen, bringing the total dividend per share for FY2024 to 10.0 sen, supported by robust cash flow and a healthy balance sheet.

“The details of entitlement and payment date of the above-said dividend will be determined and announced in due course,” it said.

Meanwhile, group chief executive officer and managing director Vivek Sood said 2024 was a pivotal year as the group advanced the Axiata 5*5 growth strategy, securing leadership positions in Malaysia, Cambodia, and Sri Lanka, while maintaining a second-place standing in Bangladesh.

He said the market consolidation should unlock synergies, improve market structure and create a more sustainable position, reinforcing its competitive edge.

With the XL Axiata-Smartfren merger set for completion in the second quarter of 2025, all of the group’s markets will transition to a three-player structure, with Axiata holding over 25 per cent market share in each.

“Despite challenges, including heightened competition in Indonesia and Malaysia, uncertainties in Bangladesh, and funding requirements for Indonesia’s fibre expansion, we remain optimistic. 

“We anticipate opportunities emerging from further currency stabilisation, synergy realisation from mergers, and continued portfolio optimisation and asset monetisation,” he said in a statement.

Vivek added that this strategic wave of consolidations underscores its commitment to sustainable value creation for shareholders, cementing Axiata’s position as a dominant telco while accelerating growth through digital business expansion and enterprise solutions.

-- BERNAMA