Axiata Group Berhad reported a sound fourth quarter and full-year performance for its financial year ended 31 December 2022 coming in ahead of its targets and analyst consensus, bolstered by strong underlying performance across most markets.
On a reported basis, compared to the financial year ended 31 December 2021, FY22 revenue and Earnings Before Interest, Tax, Depreciation and Amortisation rose to RM27.5 billion (+6.3%) and RM12.4 billion (+9.0%) respectively, contributed by all Operating Companies except Dialog and Ncell
At constant currency, revenue excluding device increased by 10.3% lifted by all except two OpCos, Celcom, and Ncell. EBITDA climbed 11.4% mainly contributed by Celcom, XL, EDOTCO, and Robi. Earnings Before Interest and Tax decreased by 93.8% at constant currency, mainly impacted by goodwill impairment. Excluding this, EBIT would have increased by 20.1%.
Group Profit After Tax and Profit After Tax and Minority Interest increased by more than 100% to RM10 billion and RM9.8 billion respectively, mainly driven by the one-off net gain on the Celcom-Digi merger amounting to RM13.5 billion, offset by higher Depreciation and Amortisation (“D&A”), taxes (Cukai Makmur and Dialog’s one-off surcharge tax), net finance cost, as well as goodwill impairment.
On a Quarter-on-Quarter basis, for the fourth quarter ended 31 December 2022 (‘4Q22’), Group’s revenue grew by 2.7% to RM7.1 billion. EBITDA grew by 9.2% to RM3.3 billion whilst EBIT dropped more than 100% to a loss of RM3.1 billion largely due to the above-mentioned goodwill impairment. Excluding this, EBIT would have decreased by 3.2%. Reported PATAMI surged by more than 100% to RM10.0 billion, contributed by off-net gain on the Celcom-Digi merger, higher revenue foreign exchange gains and lower taxes, offset by higher D&A and finance costs.
Underlying PATAMI grew 21.6% on a constant currency basis. In FY22, Axiata continued to drive cost excellence achieving a capex savings of RM1,068 million. The Group closed the year with a robust balance sheet as gross debt/EBITDA decreased to 2.9x compared to two previous quarters primarily impacted by higher debt to fund Link Net and ISOC Philippines tower acquisitions but normalised by the proceeds from the completed M&As. Cash balance remains healthy at RM7.5 billion.
