Malaysia · Delayed Price · Currency is MYR Axiata Group Berhad Earnings Call Transcripts
Fiscal Year 2026
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Q1 2026 saw strong underlying profit and EBITDA growth, driven by merger synergies, 5G rollout, and disciplined cost management, despite reported revenue decline from currency effects. Asset monetization and further CapEx reduction are targeted for 2026.
Fiscal Year 2025
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FY2025 saw strong cash flow, improved leverage, and robust segment performance despite forex headwinds. Asset monetization is on track for 2026, with regulatory approvals as the main risk. Dividend maintained and debt significantly reduced.
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Group revenue and EBITDA declined year-on-year due to forex, but underlying performance was strong, with PATAMI up 19.7% and net debt/EBITDA improved to 2.61x. Frontier markets and merger synergies drove profit growth, while Link Net impairment and forex remained key headwinds.
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First half 2025 saw RM 431 million profit, strong cash generation, and significant debt reduction, driven by portfolio optimization and operational improvements across key markets. Revenue and EBITDA were impacted by forex, but underlying performance and synergies from mergers remain robust.
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Q1 2025 saw revenue and EBITDA decline mainly due to currency effects and macro challenges, but cash flow and debt metrics improved. The group is focused on portfolio transformation, merger synergies, and debt reduction, maintaining high single-digit EBIT growth guidance and a sustainable dividend policy.
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The XL Smartfren merger will create a major telecom player in Indonesia, delivering significant scale, operational synergies, and value accretion. The transaction is expected to close in H1 2025, with joint control by Axiata and Sinar Mas and a strong focus on shareholder returns.
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The group advanced its transformation with structural changes, improved capital productivity, and strong financial discipline, including reduced net debt/EBITDA and cost savings. Key business units like ADA, Boost, Link Net, and EDOTCO showed robust growth, while AI and ESG initiatives gained momentum. Dividend growth is expected as HoldCo debt declines.
Fiscal Year 2024
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Strong profit and EBIT growth in 2024 driven by cost discipline, portfolio optimization, and successful mergers, despite modest revenue growth and challenging market conditions. Debt reduction and dividend payouts were supported by robust cash flows.
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The merger will create a leading Indonesian telco with joint control, significant cost synergies, and improved market structure. Financially accretive, the deal is expected to close by mid-2025, with integration savings and enhanced competitive positioning anticipated.
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Year-to-date revenue and profit rose, driven by cost discipline, Forex gains, and strong OpCo performance, despite macro headwinds in Indonesia and Bangladesh. Leverage improved to 2.59x net debt/EBITDA, with further de-gearing and sustainable dividends prioritized.
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Strong double-digit growth in EBITDA and EBIT was driven by robust OpCo performance, with improved balance sheet metrics and a MYR 0.05 interim dividend declared. One-off revenue adjustments and strategic mergers contributed to results, while risks remain in frontier markets and from currency fluctuations.