KUALA LUMPUR (Aug 29): Axiata Group Bhd's net loss widened to RM576.21 million for the second quarter ended June 30, 2023 (2QFY2023), from RM106.38 million a year ago.

Loss per share expanded to 6.30 sen, from 1.20 sen for 2QFY2022, it showed in a local bourse filing on Tuesday.

The group attributed the wider loss to lower share of results from Celcom Axiata Bhd, which is no longer its wholly owned subsidiary after a merger with Digi.Com Bhd to form CelcomDigi Bhd (CDB), as well as its Nepal-based telecommunications operator Ncell Pte Ltd's non-cash impairment of assets and capital gains tax write-off following the unfavourable outcome from the bilateral investment treaty arbitration proceedings in June.

These were, however, offset by a RM402 million gain from the final closing adjustments to the Celcom-Digi merger, the group said in a separate statement.

Quarterly revenue for Axiata rose 15.33% to RM5.99 billion, from RM5.20 billion for 2QFY2022.

For the first six months ended June 30, 2023 (1HFY2023), net loss grew to RM502.36 million against RM149.53 million a year earlier, while loss per share rose to 5.5 sen from 1.6 sen.

Meanwhile, revenue increased 11.71% to RM11.37 billion, from RM10.18 billion for 1HFY2022.

Despite the loss-making quarter, Axiata declared an interim dividend of five sen per share, with the entitlement and payment dates to be determined in due course.

Commenting on the performance, Axiata group chief executive officer and managing director Vivek Sood said the improved competitive environment, continued efforts by the group's operating companies to operate in a challenging macro environment and focus on growth, coupled with cost rescaling, led to the strong revenue and stable margins in 1HFY2023.

“Cash generation, an improved balance sheet and capital expenditure to chase growth opportunities have been the focus of 1HFY2023, and will remain so for the rest of the year,” he said.

“Overall, while Patami (profit after tax and minority interest) may seem hampered by the lower contribution of CDB and non-cash impairment and tax losses of Ncell, as well as a persistent challenging macroeconomic environment, sustainability of growth, a strong operating performance and cash generation provide a sustainable position against these one-off setbacks. We expect the group to deliver on the headline KPIs (key performance indicators) and indicated dividend for the year,” Vivek added.

Meanwhile, Axiata chairman Tan Sri Shahril Ridza Ridzuan said the group is poised to extend its market leadership beyond the double-digit top-line growth seen in 1HFY2023.

“The board continues to support the strategic partnerships and continued integration of synergies consequential to the strategic moves undertaken as a group. This underlines the endorsement of Axiata’s winning culture, and enables continued business sustainability,” Shahril added.

Axiata's share price had risen three sen or 1.18% to close at RM2.58, giving the group a market capitalisation of RM23.68 billion. Year-to-date, the stock has fallen 15%.

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