Axiata posts RM1.99b net loss, to exit Myanmar
KUALA LUMPUR: Axiata Group Bhd is exiting Myanmar as part of its value erosion management efforts.
The group posted a net loss of RM 1.99 billion for the financial year ended Dec 31, 2023, compared to a net profit of RM9.75 billion the previous year.
It said earnings were impacted by Nepal’s NCell Axiata Ltd and Edotco Myanmar asset impairment, higher net finance cost and lower share of results of CelcomDigi Bhd, relative to Celcom’s contribution as a subsidiary in 2022.
Revenue rose to RM22 billion versus RM20.02 billion the previous year, supported by growth across all operating companies except Boost.
Axiata said the uncertain and deteriorating operating environment and risk of further value erosion led to the decision to exit Nepal and Myanmar in its financial year 2023.
“The disposal of Nepal operations was completed on Dec 1 while discussions on the sale of Edotco Myanmar are ongoing.”
For the fourth quarter ended Dec 31, it posted a net loss of RM695.02 million versus a net profit of RM9.95 billion in the same period a year ago. Revenue rose 7.2 per cent to RM5.79 billion from RM5.4 billion previously.
The company has declared a second dividend of five sen per share, bringing the total dividend per share for the financial year 2023 to 10 sen.
Axiata chairman Tan Sri Shahril Ridza Ridzuan said the company took tough, decisive actions to exit the deteriorating operating environments of Nepal and Myanmar.
“These decisions allow the management to focus on assets that can create future value for shareholders. We remain focused on the excellent execution of our strategies to achieve our aspiration as a sustainable dividend company,” he said.
Chief executive officer and managing director Vivek Sood said the company looked forward to its telco-techco journey as it evolved to become an integral player in the region’s digital and technology ecosystem.
“We remain confident that through our refreshed corporate strategy of delivering value through five vectors and five strategic priorities, we will continue to reshape our portfolio to unlock value and build on new opportunities to create value from sustainable businesses,” he said.