KUALA LUMPUR: Axiata Group Bhd’s net profit for the third quarter ended September 30, 2024 (3Q 2024), marked a substantial recovery with RM976.67 million, contrasting the net loss of RM797.41 million recorded in the same quarter of the previous year. The surge in net profit was attributed to higher earnings before interest and taxes (EBIT), foreign exchange gains during 3Q FY2024 compared to losses in 3Q FY2023, and an advantageous gain from the early redemption of debt, as detailed in a filing to Bursa Malaysia.
According to BERNAMA News Agency, the revenue for the quarter experienced a decline to RM5.32 billion from RM5.62 billion the previous year, primarily due to the depreciation of the Indonesian rupiah and Bangladeshi taka against the ringgit. Over the cumulative nine months of FY2024, the group reported a net profit of RM1.17 billion, reversing a net loss of RM1.30 billion from the previous year, with revenue rising to RM16.74 billion from RM16.21 billion.
In a separate statement to Bursa Malaysia,
Axiata attributed the year-to-date (YTD) revenue growth of 3.3 percent to contributions from all operating companies, excluding Link Net, Dialog, and Robi. The group highlighted that increased revenue, finance income, share of results from associates, and enhanced forex gains fueled this strong performance.
Vivek Sood, Group Chief Executive Officer, emphasized Axiata’s progress in its value-creation journey, driven by operational excellence and fiscal discipline. This has resulted in revenue growth, improved margins, and a sustainable balance sheet. Key milestones achieved include the completion of the Dialog-Airtel merger in Sri Lanka and the advancement of potential merger discussions between XL Axiata and Smartfren in Indonesia.
In September, Axiata finalized its delayering strategy in Indonesia by transferring customers from Link Net to XL. This move positions Link Net as a FibreCo and XL as a ServeCo, enabling both entities to expand, enhance their organisational agility, and maximise value. Vivek expr
essed optimism about potential opportunities arising from stabilised currencies, synergy extraction from merged companies, and ongoing benefits from portfolio optimisation and asset monetisation.
Despite acknowledging challenges such as increased competition in Indonesia and Malaysia, uncertainties in Bangladesh, and funding needs for fibre development in Indonesia, the group remains optimistic. Vivek expects to meet full-year revenue growth targets, with EBIT growth anticipated to surpass headline key performance indicators.