Axiata Group Berhad reported revenue of RM5.6 billion for quarter three FY2023, slightly higher compared to RM5.3 billion it registered in the previous year. However, the group registered a loss of RM797 million for the quarter bringing the YTD loss to RM1.29 billion.
The group said the loss was affected by asset impairment due to the reclassification of Ncell as an asset held for sale and a lower share of results from CelcomDigi Berhad compared to Celcom’s contribution as a wholly-owned subsidiary, however, this was cushioned by lower forex losses.
Separately, Axiata saw a stable underlying performance led by 13.0% growth in YTD revenue ex-device. This was largely driven by consolidation at Link Net, better operational performance at Robi and XL and EDOTCO’s consolidation of acquisitions in the Philippines and Indonesia. EBIT growth of 8.9% was moderated by higher D&A from XL, Link Net and EDOTCO. Underlying PATAMI declined by 76.6% due to higher net finance cost and lower contribution from CDB.
The Group’s 3Q23 results are attributed to the challenging macro environment persisting across the Group’s footprint markets, whilst Indonesia’s fixed broadband market offers exciting growth opportunities coupled with leverage to offer fixed mobile convergence. On balance, the Group is cautiously optimistic for revenue ex-device and EBIT growth to be broadly in line with headline.
Vivek Sood, Group Chief Executive Officer and Managing Director of Axiata ” The outlook in Nepal is increasingly challenging, thus the Board has decided to exit Nepal and accordingly reclassify Ncell as asset held for sale. We believe this move will place Axiata in a much stronger position to deliver on our strategic priorities and is in the best long-term interest of all our shareholders.
