Latest news with #CelcomDigi
New Straits Times
6 days ago
- Business
- New Straits Times
Axiata's Q1 earnings more than double to RM160mil
KUALA LUMPUR: Axiata Group Bhd posted a strong set of results for the first quarter ended March 31, 2025 (1QFY2025), with net profit more than doubling to RM159.8 million from RM60.03 million a year earlier. This was underpinned by merger synergies, lower depreciation and amortisation expenses, favourable foreign exchange (Forex) movements and a higher profit contribution from CelcomDigi Bhd. However, its revenue fell 11.3 per cent to RM5.09 billion, weighed down by the depreciation of the Indonesian rupiah and Bangladeshi taka. The improved bottom line was also supported by reduced impairment charges, lower marketing and promotional spending, and net forex gains amounting to RM28.4 million. In a statement, the group noted that all of its telecommunications units except XLSmart, contributed to earnings growth, alongside continued momentum from CelcomDigi. "Underlying net profit was impacted by one-off losses, without which it would have recorded a 7.4 per cent growth," it said. Chairman Tan Sri Shahril Ridza Ridzuan said the results demonstrate Axiata's ability to adapt, integrate and grow amid a volatile macroeconomic environment. "With a solid financial footing, strategic clarity and strong leadership across our markets, we are laying the groundwork for enduring relevance in Southeast and South Asia's digital future. "The board remains focused on ensuring governance strength, strategic discipline and long-term resilience as we continue to shape the next chapter of the group," he added. Axiata's basic earnings per share rose to 1.7 sen in 1QFY2025 from 0.7 sen in the corresponding quarter last year. Axiata said both of its jointly controlled entities are progressing well in their integration efforts, with synergy realisation on track. CelcomDigi is expected to generate RM700 million in annual run-rate synergies by 2027, while XLSmart is targeting annual pre-tax synergies of between US$300 million (RM1.27 billion) and US$400 million within the same period. The group is actively monetising its infrastructure assets, including Link Net and Edotco Group, as part of its strategy to attract capital investment and pare down debt. Axiata's frontier market operations - Robi Axiata Ltd, Dialog Axiata PLC and Smart Axiata - continued to demonstrate resilience, posting strong profit growth and positive cash flow despite ongoing market volatility.
The Star
6 days ago
- Business
- The Star
Axiata's 1Q net profit leaps to RM159.84mil
KUALA LUMPUR: Now in the second year of its 5*5 strategy, Axiata Group Bhd realised robust bottomline growth in the first quarter of 2025, underpinned by lower depreciation and amortisation, forex gains, lower net finance costs and a higher share of results from CelcomDigi. In the quarter under review, the telco group reported a net profit of RM159.84mil, more than double the net profit of RM60.03mil in the year-ago quarter, bringing its earnings per share to 1.7 sen from 0.7 sen previously. This was despite an 11.3% lower revenue of RM5.09bil, down from RM5.74bil in 1QFY24, due to forex translation, notably from the depreciation of the Indonesian rupiah and Bangladeshi taka. According to the group, there was substantial progress in 1QFY25 towards its strategic long-term and medium-term portfolio ambitions, driven by a sharper portfolio mindset. "The group's operational start to the new financial year clearly demonstrates our commitment to creating value from our portfolio of businesses. This quarter's performance highlights Axiata's ability to adapt, integrate and grow in a dynamic regional landscape, even amidst macroeconomic volatility," said chairman Tan Sri Shahril Ridza Ridzuan. Group CEO and managing director Vivek Sood said the group has taken steps to reposition towards its long and medium-term portfolio objectives. "We are confident that our strategic framework, focused on strengthening connectivity and convergence businesses while streamlining our portfolio for value creation and monetisation, will enable us to capitalise on significant market opportunities."
Malaysiakini
6 days ago
- Business
- Malaysiakini
Axiata's 1Q net profit more than doubles to RM159m
Axiata Group Bhd's net profit jumped to RM159.8 million in the first quarter ended March 31, 2025 (1Q 2025) from RM60.03 million in the same period last year. The increase was driven by foreign exchange gains, lower depreciation and amortisation, and higher contributions from CelcomDigi. In a filing with Bursa Malaysia, Axiata reported that...
Free Malaysia Today
23-05-2025
- Business
- Free Malaysia Today
Bursa edges down, mirrors Wall Street's slump
KUALA LUMPUR : Bursa Malaysia opened lower on Thursday, mirroring a weaker Wall Street's performance overnight. At 9.03am, the FTSE Bursa Malaysia KLCI (FBM KLCI) eased 4.99 points, or 0.32%, to 1,539.81 from Wednesday's close of 1,544.80. The benchmark index had opened 3.34 points easier at 1,541.46. There were 280 decliners in the broader market and 52 gainers, while 199 counters were unchanged, 1,887 untraded, and seven suspended. Turnover stood at 116.88 million shares valued at RM52.17 million. Malacca Securities Sdn Bhd said that the overall local sentiment is expected to trade in a negative tone, tracking Wall Street's performance. It noted that trading opportunities may be seen in gold-related stocks, given the recent surge in gold prices amid global economic uncertainties. 'Despite the US-China tariff pause, pressure is mounting after the US warned that Huawei's Ascend chips would violate export controls, potentially capping upside for technology stocks. 'Nevertheless, we remain positive on domestic-driven construction stocks,' Malacca Securities said in a research note today. Among heavyweights, CelcomDigi, Hong Leong Bank and Press Metal were flat at RM3.90, RM20 and RM5.05, respectively, while Maybank eased 4.0 sen to RM9.96, Public Bank shed 6.0 sen to RM4.37, TNB slid 2.0 sen to RM4.08, and CIMB went down 1.0 sen to RM6.99. In active trade, Velesto, TA Win and SFP Tech were flat at 16.5 sen, 2.0 sen and 22 sen, respectively, while Harvest Capital and Alam Maritim gave up half-a-sen each to 18 sen and 3.0 sen, Perdana Petroleum shaved 1.5 sen to 16.5 sen, JCY International went down 2.0 sen to 33.5 sen and Sarawak Cable slipped half-a-sen to 2.5 sen. On the index board, the FBM Emas Index dwindled 50.22 points to 11,475.46, the FBMT 100 Index went down 46.94 points to 11,235.83, and the FBM ACE Index dipped 14.68 points to 4,611.37. The FBM Emas Shariah Index sank 46.51 points to 11,399.14, and the FBM 70 Index lost 109.62 points to 16,236.28. Across sectors, the Financial Services Index shed 77.94 points to 18,137.93, the Industrial Products and Services Index edged down 0.60 of-a-point to 154.45, the Energy Index was 6.35 points easier at 706.61, while the Plantation Index garnered 10.24 points to 7,340.02.
New Straits Times
23-05-2025
- Business
- New Straits Times
CelcomDigi core earnings set to accelerate, driven by integration gains
KUALA LUMPUR: CelcomDigi Bhd's core earnings growth is expected to accelerate to 11 per cent and 25 per cent in financial year 2026 (FY26) and FY27, from four per cent in FY25. RHB Investment Bank Bhd (RHB Research) said this is driven by the tapering off of integration-related costs, the realisation of stronger synergies and improving commercial execution. The firm also noted that CelcomDigi has reaffirmed its steady-state pre-tax savings target of RM700 million to RM800 million post-FY27. For FY26, CelcomDigi expects low-single digit growth in service revenue, low-to-mid single digit earnings before interest and taxes (EBIT) growth and capital expenditure-to-sales of 14-16 per cent. "We see integration cost tailing off in FY25 with the network integration coming to a close," the firm said in a research note. "With the improvement in commercial execution and greater extraction of merger synergies, we see core earnings growing at a compound annual growth rate (CAGR) of 18 per cent for FY25-27," it added. According to RHB Research, CelcomDigi has completed about 80 per cent of its network integration as at end of first quarter of 2025 from 75 per cent in the fourth quarter of 2024. "We see some challenges in integrating the remaining 20 per cent of the sites due to extended discussions with Digital Nasional Bhd and site owners with some slippage in integration timeline to the second half (Q1) of 2025," it added. The firm said the company has booked RM300 million in integration cost since the merger started, out of the RM527 million in total integration cost including capital expenditure (capex). Meanwhile, integration cost in Q1 totaled RM63 million, of which RM41 million is operating expenditure (opex)-related and the remainder on capex (RM22 million). The firm noted that the Q1 capex of RM148 million was low, representing just 5.0 per cent of revenue, but expected to increase over the next few quarters – in line with the IT platform upgrades. RHB Research kept its 'Buy' call on CelcomDigi with a target price of RM4.40 a share.
