Axiata Group's profits were negatively impacted by an asset charge related to its Nepalese unit, but most of its operators experienced growth. In the third quarter of 2023, the company reported a widened loss of MYR 797 million (USD 171.5 million), compared to MYR 52.4 million in the same quarter last year.
This was primarily due to an asset impairment charge from its Nepalese operator Ncell and lower share from CelcomDigi following a merger in 2022. However, the impact was partially offset by lower forex losses.
Axiata Group's CEO and Managing Director, Vivek Sood, acknowledged that the Nepalese market had become increasingly challenging, leading the board to decide to exit Nepal and reclassify Ncell as an asset held for sale. Despite ongoing concerns about the macroeconomic environment, the company expects risks to decrease as interest rates lower next year.
Sood expressed his confidence, outlining that the company's assets will continue to grow as market conditions improve, price stability is maintained, and there is continued demand for mobile, digital, and enterprise solutions.
Axiata Group Financial Highlights
Total Revenue:
Axiata Group's total revenue surged by 5.3%, reaching MYR 6 billion.
Regional Breakdown
Indonesia (XL Axiata): Recorded an impressive 9.3% growth in Malaysia dollar terms, contributing MYR 2.5 billion to the overall increase.
Sri Lanka (Dialog): Experienced a notable 17.4% rise, reaching MYR 675.1 million.
Capital Expenditure (CapEx)
Group CapEx decreased by 21.8%, amounting to MYR 3.8 billion.
CapEx accounted for 21.8% of total revenue, down from 27.2% in 2022.
Profit Growth
Bangladesh (Robi): Profits doubled, reaching MYR 44.7 million.
Cambodia (Smart): Achieved a significant doubling of profits, totaling MYR 108.5 million.
Revenue Changes
Robi (Bangladesh): Reported a 4.7% increase in revenue, reaching MUR 1.1 billion.
Smart (Cambodia): Experienced a 4.1% decline in revenue, falling to MYR 437.2 million.
