Teleport Generates RM1.1bil in Total Revenue

Teleport, Capital A's logistics arm, surpassed its target after generating RM1.1bil in total revenue in 2024, up by 10% from its initial guidance of RM1bil.

The amount reflected a 49% year-on-year (y-o-y) jump from the previous year’s revenue of RM731mil.

Chief executive officer Pete Chareonwongsak attributed the higher income to the significant increase in revenue contribution by its eCommerce segment, which increased by 130% y-o-y to RM328mil.

Meanwhile, the company’s cargo segment remained the major contributor to the group’s revenue at RM760mil.

Teleport’s earnings before interest, taxes, depreciation and amortisation (Ebitda) for the year had increased to RM90mil from RM29mil, reflecting a 215% y-o-y growth.‌

In the fourth quarter of financial year 2024 (4Q24), the company posted a record-high revenue of RM352mil as well as an Ebitda of RM30mil.

“We really did not see anything other than continued growth, especially for eCommerce and logistics overall,” Chareonwongsak said during Teleport’s results briefing yesterday.

He said it was worth mentioning that over 50% of the revenue for the quarter was generated outside of AirAsia’s capacity – seeing that Teleport utilises seven of AirAsia’s airlines to move cargo.

As of now, Teleport utilises about 40 partner airlines on top of its own freighters.

Chareonwongsak added that 2025 will be the year of scalability for Teleport, as the group plans to create more volume and increase profitability.

On that note, he remains confident in the groups’ ability to deliver two million parcels a day by the end of 2025 supported by the eCommerce market.

“To us, that is where the two million (parcels a day) comes from, because that figure translates into volumes that are about a million tonnes a year or better.

“So, we can get there organically and we aim to get to a global scale within the next year,” he said.

Other strategies include strengthening partnerships with existing airlines for more capacity, increasing direct volumes from China’s top eCommerce marketplaces, leveraging tech for value-added services and optimising end-to-end costs.

As of now, the group has delivered about 84.1 million parcels in total at a peak of 368,000 parcels a day.

“It is more than five times the present haul to reach two million parcels a day. But I am confident we can achieve the goal by this year,” he affirmed.

Of note, he said Teleport will be made public later in the year.

Without disclosing further details on the timeline and the amount looking to be raised, he affirmed that market interest is there.

“We do attract a lot of interest from around the region and beyond.

“In short, I believe what makes us an investable company is that we are a regional company,” he said, adding that there is a significant number of investable companies in South-East Asia that are undergoing growth stages and are profitable at the same time.

Teleport is among Capital A’s non-aviation key contributors, alongside Asia Digital Engineering and AirAsia MOVE.

The company had contributed about 36% in Capital A’s non-aviation revenue in financial year 2024.

$AIRASIA / 5099 (AIRASIA GROUP BERHAD)

Source: The Star