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 were impacted by currency and market factors.

• PATAMI rose to RM1.1 billion year-to-date, supported by operational performance, forex gains, and a gain on early debt redemption; normalized PATAMI at RM551 million, 3.6x higher than last year.

• Net debt to EBITDA improved to 2.59x from 3.36x at the start of the year, reflecting debt repayment and EBITDA growth.

• Strong cash flow generation, with adjusted operating free cash flow exceeding RM1.94 billion year-to-date.

• Ongoing macroeconomic headwinds in Indonesia, Bangladesh, and Sri Lanka, but operational discipline and cost management have driven profit and margin improvements.

Financial highlights

• Year-to-date revenue up 3.3% to RM16.74 billion; EBITDA up 14.6% to RM8.2 billion; EBIT up 37.7% to RM2.6 billion; PATAMI over 100% higher at RM1.1 billion.

• At constant currency, revenue up 3.4%, EBIT up 38.9%, UPATAMI over 100% higher at RM551 million.

• Adjusted operating free cash flow more than doubled to RM1.94 billion, driven by EBITDA growth and capex optimization.

• Net debt/EBITDA improved to 2.59x, lowest since Celcom deconsolidation.

• 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.

• Management remains cautious on macroeconomic headwinds in Sri Lanka and Bangladesh, with a wait-and-see approach in Bangladesh.

• Optimism for Indonesia in 2025 as market pricing stabilizes, though affordability remains a challenge.

• Dividend payout remains committed at RM0.10, with potential for progressive increase depending on full-year results.

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