Q4 2024 Axiata Group Bhd Earnings Call Transcript
Key Points
- 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.
Good afternoon, ladies and gentlemen. My name is Clare Chin, Head of Investor Relations at Axiata. Thank you for standing by, and welcome to our fourth quarter results briefing. Today, we have present with us Vivek Sood, Axiata Group CEO; Nik Rizal, Axiata Group CFO; as well as representatives from our operating companies. There will be a short presentation, followed by a Q&A.
So without further ado, I'll hand over the conference to Vivek.
Thank you, Clare. A very good afternoon to all of you. It's a pleasure to present quarter four, 2024 results of Axiata. Let me start quickly going through the presentation. Just to give you a brief outline or executive summary on how the results of 2024 look like, there are obviously two parts of it. One is the financial elements and second is the execution of the strategy. So just quickly cover a few points on the strategy.
As you know, last year
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