Axiata in 3Q 2022 results, reported a group revenue of RM7.3 billion reflecting an 11% growth, Earnings Before Interest, Tax, Depreciation, and Amortisation and Earnings Before Interest increased by 12.0% and 25.9% respectively. Significant foreign exchange losses stemming from the strengthening of the USD against OpCos’ local currencies and higher finance costs narrowed PATAMI to a loss of RM52.4 million.
However, the group said on an underlying basis, double-digit growth was recorded across key indicators reflecting the Group’s solid operational track record. YoY revenue excluding device, EBITDA, and EBIT expanded by 15.9%, 15.9%, and 27.1%. Underlying PATAMI dropped 4.8% due to higher D&A, finance costs from recent acquisitions, and taxes due to Cukai Makmur.
On a Year-To-Date (YTD: YTD22 vs YTD21) basis, revenue ex-device and EBITDA increased by 10.7% and 10.8% respectively with EBITDA margin stable at 44.6%. EBIT and Underlying PATAMI improved by 31.5% and 19.1% with higher EBITDA contribution across all OpCos except Dialog, Ncell and Smart.
In delivering cost excellence, Axiata achieved a total savings of RM1.2 billion through RM755 million in capital expenditure (“Capex”) and RM490 million in operational expenditure (“Opex”).
The Group’s balance sheet reflected its growth strategy, with a temporary uplift in gross debt/EBITDA at 3.19x primarily due to financing for Link Net and Philippines tower acquisitions. This will be normalised as proceeds from completed mergers and acquisitions are used to pare down debt and full EBITDA impact of acquisitions is consolidated. Cash balance was at RM7.7 billion.
As for growth, Celcom continues to shine with EBITDA expanding 12.4% arising from disciplined cost management resulting in lower Opex and debt recovery from postpaid customers. Consequently, PATAMI rose by 65.3% to RM856 million.
The rest of the operations however was fairly impacted by the USD, XL saw its PATAMI narrow to a decline of 3.5% on account of higher net finance costs and the absence of one-off gains. Robi‘s PATAMI fell by 66% dragged by forex loss on USD-denominated loans and higher net finance costs. Same goes for Dialog, NCell, and Smart.
Digital business remains in its trajectory, with Boost recording a revenue growth of 30.1% YTD mainly attributed to its AI lending business and consumer fintech app, while EBIT grew marginally at 2.5%. GTV rose by 27.1% to RM4.6 billion YTD, Boost users and merchants increased 9% YoY to 10.2 million, and 33.1% to 538,000.
ADA’s revenue grew by 11.7% YTD driven by steady growth in Customer Engagement and an expansion of eCommerce solutions. EBIT grew by 3.7%, despite higher wage inflation and PATAMI improved by 3.9%.
The group has also declared a 5 sen interim dividend for the third quarter ended 30 September 2022.
