KUALA LUMPUR: Axiata Group Bhd
reported strong revenue growth in the first half of its financial year, although its bottomline was hampered by lower contributions from CelcomDigi Bhd and tax losses from Nepal unit Ncell.
In the second quarter of 2023, the telco group reported improved revenue of RM5.99bil, up from RM5.2bil in the comparative quarter.
However, the group posted a net loss of RM576.21mil in 2QFY23, greater than a net loss of RM106.38mil recorded in the same quarter in 2022.
The group's loss per share widened to 6.3 sen fom 1.2 sen previously.
Cumulatively, Axiata has racked up a net loss of RM502.36mil in the six months to June 30, on revenue of RM11.37bil, underpinned by growth in revenue ex-device from all operating companies except ADA and Ncell.
This compares to a net loss of RM149.35mil and revenue of RM10.18bil in 1H22.
The group declared a first interim dividend of five sen a share, as part of its commitment to shareholders to reach a 10 sen per share dividend target in 2023.
According to the group, Axiata recorded a lower share of results from CelcomDigi of RM223mil as compared to Celcom's contribution as a wholly-owned subsidiary.
Axiata also had to contend with the negative outcome of Ncell's legal case against the government of Nepal, which resulted in a non-cash asset impairment of RM393mil and capital gains tax write-off of RM317mil.
Profit after tax and minority interests (Patami) was supported by a gain of RM402mil from the closing adjustments of the Celcom-Digi merger, said the group.
“Overall, while Patami may seem hampered by the lower contribution of CelcomDigi and non-cash impairment and tax losses of Ncell, as well as a persistent challenging macroeconomic environment, sustainability of growth, strong operating performance and cash generation provides a sustainable position against these one-off setbacks.
"We expect the group to deliver on headline KPIs and the indicated dividend for the year,” said group CEO and managing director Vivek Sood.
Axiata's net debt/ earnings before interest, depreciation and amortisation (Ebitda) improved to 3.06x from 3.23x in the previous quarter due to Ebitda uplift.
The group said its cash balance remains robust at RM6.3bil.
