Latest news with #VivekSood
The Star
28-05-2025
- 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."
Yahoo
04-03-2025
- Business
- Yahoo
Axiata Group Bhd (XKLS:6888) Q4 2024 Earnings Call Highlights: Strong Profit Turnaround and ...
Revenue Growth: 1.9% increase to MYR22.4 billion, supported by growth from all OpCos except Link Net and Dialog. EBIT: MYR3.7 billion, more than doubled year-on-year, with a 39.3% improvement compared to last year. Net Profit: MYR947 million, a significant turnaround from a loss last year. EBITDA Growth: 12.3% year-on-year increase. CapEx: Reduced to MYR4.1 billion from an initial guidance of MYR6.1 billion. Net Debt to EBITDA: Improved to 2.74x from 3.36x in the previous year. Dividend: Total of MYR0.10 per share for the year, supported by MYR1.5 billion dividends from operating companies. Cash Flow: Strong cash flows of MYR2.3 billion, driven by EBITDA growth and lower CapEx. Smart Profit: USD119 million profit, with strong ARPU growth in Cambodia. XL Performance: Best profit year with a 25.1% EBIT growth. Robi EBIT Growth: 23.4% increase due to operational excellence. EDOTCO Profit: Strong profit growth with maiden dividend declared. Adjusted OFCF: Increased by more than 100% year-on-year to MYR2.3 billion. Debt Reduction: MYR1.7 billion reduction in borrowings, with a focus on reducing exposure to interest rate and forex volatility. Warning! GuruFocus has detected 8 Warning Signs with XKLS:6888. Release Date: February 26, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Axiata Group Bhd (XKLS:6888) successfully executed the merger of Airtel with Dialog in Sri Lanka, ahead of schedule, with network integration largely completed. The company reported strong profit growth across several operating companies, including Smart, XL, and Robi, with profits growing sevenfold since 2022. Operational excellence led to a 4% increase in EBIT margin, driven by effective cost management and waste reduction. CapEx was optimized, resulting in a significant reduction from MYR6.1 billion to MYR4.1 billion, contributing to a 39.3% improvement in EBIT. Axiata Group Bhd (XKLS:6888) reduced its net debt to EBITDA ratio to 2.74x, ahead of its 2026 target, and declared a total dividend of MYR0.10 for the year. Revenue growth was a challenge, particularly in Indonesia and Bangladesh, due to sluggish economic conditions and political instability. Link Net struggled with restructuring and slower growth in the ServCo side, impacting its performance. EDOTCO faced a 12% revenue drop in Malaysia due to the timing of Jendela revenue recognition. The company experienced ForEx losses, particularly impacting EDOTCO's PATAMI level in the fourth quarter. The competitive landscape in Malaysia and Indonesia remains intense, with no immediate signs of market repair in Malaysia. Q: Does the FY25 guidance incorporate the second-half merger happening in Indonesia? A: No, it does not. The guidance is based on business-as-usual, and any completion of the transaction will lead to a restatement of the guidance. - Vivek Sood, Group CEO Q: What drove Robi's profits up by 59% quarter-on-quarter in the fourth quarter despite lower EBITDA and EBIT? A: The realized losses on ForEx were higher in Q3, but we saw a gain due to debt reduction efforts and better cash flows, along with some tax benefits. - Vivek Sood, Group CEO Q: What was the driver for Dialog's improved profits on a quarter-on-quarter basis? A: The key improvements came from price hardening, market repair actions, and synergies from the Airtel merger, along with ongoing cost rationalization initiatives. - Supun Weerasinghe, Group Chief Executive of Dialog Axiata PLC Q: Why did EDOTCO Malaysia's revenue drop 12% on a QonQ basis in the fourth quarter of 2024? A: The drop was due to the recognition of Jendela revenue milestones, which were significantly recognized in the previous quarter. - Mohamed Adlan Ahmad Tajudin, CEO of edotco Group Sdn Bhd Q: Can you elaborate on the competitive landscape for 2025 in Malaysia and Indonesia? A: In Indonesia, market sanity is expected to return with ARPU development. In Malaysia, competition remains intense, especially on the prepaid side, with no major changes in market pricing expected soon. - Vivek Sood, Group CEO For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
