Axiata Group recorded double-digit revenue growth in the first quarter of 2024, driven by strong performance from most of its operating companies, but profits declined due to higher foreign exchange and finance costs.
The company met its revenue targets and “delivered significant improvement in underlying operating profit,” group CEO and MD Vivek Sood said in a statement, adding that the company remains cautious on the macroeconomic outlook.
Net profit fell 18.7% year-on-year to RM60 million ($12.7 million) as foreign exchange costs rose tenfold to RM196.6 million and finance costs increased 18% to RM602 million. At constant exchange rates, PATAMI's underlying profit increased by more than 100% to RM141.7 million.
Despite the decline in profits, the results follow three consecutive quarters of year-over-year losses.
Total revenue increased 13.3% to RM5.7 billion, driven by growth in all businesses except Indonesia LinkNet's fixed broadband business.
The operator's Indonesian mobile unit XL's net profit doubled to RM167 million as revenue grew 17.2% to RM2.4 billion on improved ARPU. Bangladesh's Robi's revenue grew 11.2% to RM1.1 billion on higher prepaid data revenue, and net profit doubled to RM45.9 million.
Dialog in Sri Lanka saw its revenue increase 4.7% to RM652.9 million, mainly due to the strengthening of the local currency, but its net profit fell 61.4% to RM41.8 million due to lower foreign exchange gains and higher finance costs.
Cambodian subsidiary Smart's revenue increased 19.1% to RM472.6 million and its net profit increased 23.7% to RM132.4 million.
Axiata's tower company Edotco saw its revenue grow 7.2% to RM613.4 million but posted a net loss of RM40.8 million due to higher expenses and foreign exchange losses.
Link net revenue fell 2.1% to RM275.5 million mainly due to lower corporate revenue. It posted a loss of RM33.1 million due to higher depreciation and amortisation expenses and finance costs to support its network expansion.
