$AXIATA / 6888 (AXIATA GROUP BERHAD) - 2QFY24

Core net profit driven by strong performances from Cambodia’s Smart and Indonesia’s XL. This result met consensus expectations but exceeded some forecasts.

Revenue and Growth:
Revenue increased to RM5.8bn (+2.9% YoY), with notable contributions from edotco and Cambodia. However, some units like Link Net and Dialog lagged.
For 1H24, revenue was RM11.4bn, flat YoY, while core net profit was RM330m (+159% YoY).

Operational Highlights:
Edotco saw significant revenue growth (+24.6% YoY) and robust EBIT performance.
XL Axiata’s subscribers grew slightly, and blended ARPU remained strong.
Smart’s revenue grew by 16.2% YoY, with improved ARPU and subscriber base.

Here are some key points to consider:

Strong Performance : The notable profit contributions from Cambodia’s Smart and Indonesia’s XL are encouraging. This highlights Axiata's ability to drive growth in its major markets despite regional challenges.

Operational Efficiency: The growth in edotco’s revenue and EBIT is a positive sign, reflecting effective cost management and strong demand for infrastructure, particularly with 5G deployment. Similarly, the improved ARPU and subscriber growth in XL and Smart indicate solid operational execution.

Revenue Growth and Margin Improvement: The revenue growth of 2.9% YoY, coupled with a significant increase in profit, suggests that Axiata is successfully offsetting weaknesses in certain regions