KUALA LUMPUR: Axiata Group Bhd has returned to profitability, posting a net profit of RM134.8 million for the second quarter of 2024 (2Q24), against the net loss of RM576.2 million in the same quarter last year.
The company's revenue was up 2.9 per cent increase, reaching RM5.7 billion, up from RM5.5 billion in the corresponding period the previous year.
In a filing with Bursa Malaysia, Axiata noted that this growth was driven by contributions from all of its Operating Companies (OpCos), except for its mobile operations in Sri Lanka and fixed broadband operations in Indonesia.
The telecommunications company has declared a first interim dividend of 5 sen per ordinary share, which was seen as a commitment to shareholders to reach the 10 sen per share target dividend for 2024.
Axiata's continuing operations for the quarter, which excludes Ncell and Edotco Myanmar, reported a 12.9 per cent increase in earnings before interest, taxes, depreciation, and amortisation reaching RM2.8 billion.
Whereas its net profit stood at RM201.5 million, from a net loss of RM193.6 million mainly driven by higher toplines and lower foreign exchange losses, partially offset by higher taxes.
For the six months ended June 30, 2024, net profit from conitnnuing operations was up more than 100 per cent on 7.8 per cent revenue of RM11.4 billion.
Axiata group chief executive officer and managing director Vivek Sood said despite the sociopolitical and macroeconomic volatilities, the company have remained its focus on driving growth and improving margins.
"We have completed the Dialog-Airtel merger in Sri Lanka and initiated a proposed merger discussion between XL Axiata and Smartfren in Indonesia."
"These moves are in line with our strategy of market consolidation towards three major telco operators in each of our markets, where Axiata's operations either lead or are substantially scaled," he added.
Sood said this will provide a sustainable model for long term returns.
"Meanwhile, our focus on delayering is underway, with the process of establishing a FibreCo in Indonesia. Additionally, the launch of Boost Bank further strengthens our fintech proposition in Malaysia.
"Though we acknowledge headwinds with recent increased competition in Indonesia and uncertainty due to recent developments in Bangladesh, the group anticipates revenue growth to meet our full-year targets, while EBIT growth is expected to be ahead of headline key performance index (KPIs)," he added."In recognition of this performance, the Board is pleased to declare a first interim dividend of 5 sen per ordinary share, reinforcing our commitment to delivering value to our shareholders and stakeholders," Axiata chairman Tan Sri Shahril Ridza Ridzuan said.