Axiata Group Berhad (AXIATA) Q2 2024 earnings summary

Executive summary

• Year-to-date revenue grew 7.8% to RM11.4 billion, with double-digit EBITDA and EBIT growth; PATAMI increased over 100% due to higher EBIT, improved associate results, and lower forex losses, offset by higher finance costs and taxes.

• Interim dividend of 5.0 sen per share declared, in line with the annual 10 sen commitment.

• Net debt to EBITDA improved to 2.88x at end Q2 2024 from 3.34x at end 2023; HoldCo cash increased to RM1.3 billion, aided by ADA stake sale proceeds.

• AOFCF after leases more than doubled to RM677 million, driven by EBITDA growth.

• Discontinued operations contributed RM120.7 million to PAT, mainly from prior-year impairments and gains on disposal.

Financial highlights

• H1 2024 revenue: RM11,418 million (+7.8% YoY); EBITDA: RM5,562 million (+18.7% YoY); EBIT: RM1,766 million (+42.9% YoY); PATAMI: RM324 million (>100% YoY).

• Underlying revenue growth at constant currency: 5.2%; EBIT growth: 40.0%; UPATAMI: RM324 million (>100% YoY).

• Q2 2024 revenue up 2.9% YoY to RM5.76 billion; EBITDA up 12.9% to RM2.83 billion.

• Cash and cash equivalents at period end: RM4.04 billion, up from RM3.39 billion at start of year.

• Net assets per share: 236 sen as of 30 June 2024.

Outlook and guidance

• 2024 guidance: mid-single digit revenue growth and mid-teens EBIT growth at constant rates; EBIT growth expected to exceed headline KPI despite macroeconomic and political challenges in Bangladesh and Sri Lanka.

• Board remains cautious due to macroeconomic challenges in Sri Lanka and Bangladesh.

• Four corporate actions in the pipeline, including XL-Smartfren merger and Link Net customer migration to XL, with completions expected by Q4 2024.