Axiata hit by asset impairment, maintains strong operating performance


FILE PHOTO: A general view of the Axiata headquarters building in Kuala Lumpur

KUALA LUMPUR: Axiata Group Bhd has maintained a strong performance in its continued operations, and is on track to meeting 2023 headline key performance indicators (KPI), said group CEO and managing director Vivek Sood.

In the third quarter of 2023, the telco's net loss widened to RM797.41mil, as compared to RM52.4mil in the same 2022 quarter, as it was affected by asset impairment due to the reclassification of Ncell as an asset held for sale following its decision to exit Nepal.

Axiata also recorded a lower share of results from CelcomDigi Bhd as compared to Celcom's contribution as a wholly-owned subsidiary.

Revenue during the quarter was RM5.7bil, up from RM5.37bil in the 2022 corresponding quarter.

Meanwhile, the group's nine months net loss was RM1.3bil as compared to a net loss of RM201.76mil in 9MFY22, while revenue was RM16.43bil as compared to RM14.84bil in the same 2022 period.

However, the group said it maintained a stable underlying performance in the first nine months of 2023.

Year-to-date, the group registered 13% growth in revenue ex-device, mainly driven by consolidation at Link Net, better operational performance at Robi and XL and Edotco’s consolidation of acquisitions in the Philippines and Indonesia.

Earnings before interest and taxes (Ebit) growth of 8.9% was moderated by higher depreciation and amortisation from XL, Link Net and Edotco.

Underlying profit after tax and minority interest (Patami) declined 76.6% due to higher net finance cost and lower contribution from CelcomDigi.

"A challenging macro environment persists across the group’s footprint markets, while Indonesia’s fixed broadband market offers exciting growth opportunities coupled with leverage to offer fixed mobile convergence.

"On balance, the group is cautiously optimistic for revenue ex-device and Ebit growth to be broadly in line with headline KPIs," said Vivek in a statement.

He added that risks are expected to subside as interest rates start to lower in 2024.

"Our assets will continue to grow as market structure improves, price stability prevails and demand for mobile, digital and enterprise solutions remain," he said.

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Axiata , telco , Ncell , Vivek Sood

   

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