Malaysia · Delayed Price · Currency is MYR Axiata Group Berhad Earnings Call Transcripts
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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Net debt/EBITDA improved to 2.61x with MYR 1.9 billion debt reduction, while EBITDA and PATAMI grew on an adjusted basis despite forex headwinds and Link Net impairments. Frontier markets and merger synergies drove operational gains.
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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 is executing a multi-pronged strategy focused on operational excellence, digital transformation, and value creation across telco, infrastructure, and digital businesses. Financial discipline has improved leverage and cash flow, while AI and ESG initiatives are advancing. Monetization of select assets and further growth in connectivity and digital services are key priorities for 2025.
Fiscal Year 2024
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Axiata delivered strong profit growth in 2024, driven by cost discipline, lower CapEx, and market consolidation, with EBIT up 39.3% and net debt to EBITDA down to 2.74x. 2025 guidance targets modest revenue and EBIT growth, with continued focus on asset monetization and operational excellence.
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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 strongly, with improved margins and reduced leverage, despite macro headwinds in Indonesia, Bangladesh, and Sri Lanka. Operational discipline, cost control, and strategic restructuring drove robust cash flow and balance sheet strength.
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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.