KUALA LUMPUR (May 30): Axiata Group Bhd (KL:AXIATA) has maintained its mid single-digit revenue growth target in the financial year ending Dec 31, 2024 (FY2024), its group chief executive officer and managing director Vivek Sood told the press conference in conjunction with its quarterly result announcement.

“While the operational performance for the first quarter (1QFY2024) is encouraging, the group recognises that the challenging macroeconomic environment persists. The US interest rates are still so dynamic.

The effects of the war are still not over and it is still driving inflation in a lot of markets. This has an impact on the operations we have. So that is why we said the headwinds are still there,” said Sood.

The group has kept its “mid-teens” increase in earnings before interest and tax.

The group is committed to a dividend of 10 sen per share in FY2024, the same level as it declared for FY2023. It did not propose any dividend for 1QFY2024.

“The 1QFY2024 results, we look like we are on track with our financial numbers being in line with what we had promised at the beginning of the year. So, as such, the target for this year is still to continue with the 10 sen per share payout,” said Axiata's group chief finance officer Nik Rizal Kamil Nik Ibrahim at the press conference.

As at end-March, 2024, Axiata’s total cash and cash equivalents stood at RM3.29 billion, while borrowings totalled RM25.53 billion, of which RM22.27 billion is non-current borrowings.

On Wednesday, Axiata announced its quarterly revenue increased 13% year-on-year to RM5.66 billion in the first quarter ended March 31, 2024 (1QFY2024) from RM5 billion a year ago. It has attributed its revenue growth to "excellent performance" from all operating companies except for Link Net, which recorded lower enterprise revenue.

It also snapped its streak of losses and reported a net profit of RM60.03 million in 1QFY2024. But its quarter net profit was still 19% lower compared with RM73.85 million a year ago, due to higher foreign exchange losses and finance costs.

The telco group had been bleeding red ink in three consecutive quarters: RM695 million in 4QFY2023, RM797.4 million in 3QFY2023, and RM576.2 million in 2QFY2023.

Its earnings before interest, tax, depreciation and amortisation (Ebitda) — which grew 25.4% year-on-year — was largely contributed by XL and Robi due to data revenue growth and cost optimisation, coupled with higher co-location and lower manpower cost at Edotco.