Good afternoon, ladies and gentlemen. My name is Clare Chin, Head of Investor Relations at Axiata Group Berhad. Thank you for standing by, and welcome to Axiata's Fourth Quarter Results Briefing. Today, we have present with us Vivek Sood, Axiata Group CEO, Nik Rizal Kamil Nik Ibrahim Kamil, Axiata Group CFO, as well as representatives from our operating companies. There will be a short presentation followed by a Q&A. Without further ado, I'll hand over the conference to Vivek.
Thank you, Clare. A very good afternoon to all of you. It's a pleasure to present quarter four 2024 results of Axiata. Let me start quickly going through the presentation. Just to give you brief outline or executive summary on how the results of 2024 looked like, there are obviously two parts of it. One is the financial elements, and second is the execution of the strategy. Just quickly cover a few points on the strategy. As you know, last year we did merge Airtel with Dialog in Sri Lanka. I'm happy to inform the merger execution has been in line, much ahead of what was originally planned. Most of the network integration has been done and we should be able to start realizing synergies of the merger here in 2025 itself.
Structural transformation of Indonesia, we did move the customers from Link Net to XL so that XL can be a converged ServCo of mobile and fixed broadband. They now serve around 1 million customers with access to around 3.4 million home passes. Consolidation in Indonesia, a very important move for us, which is pretty much on track, and we hope to complete that by Q2 2025. This allows us to be in all markets with three players, where we have a number one position in three markets, a strong number two in Bangladesh, and close to number two in Indonesia. I think good information on the profits. Smart delivered a very strong $120 million, $119 million profit, US dollar profit last year.
XL had the best profit year. Robi similarly. Their profits have grown sevenfold since 2022 and doubled, more than doubled from last year. edotCo also delivered a very strong profits for 2024 and also declared maiden dividend though it's a small amount, but that basically brings within a discipline for edotCo to start giving some returns to the shareholders. How has this come about? Is by focusing on operational excellence. We've seen the costs being well managed across operating company. In a little bit sluggish markets, the revenue has been a bit of a challenge, but companies have really focused on driving cost excellence and removing wastages, which has actually delivered higher EBIT margin of 4%.
CapEx has been optimized from MYR 6.1 billion, which was what we had guided beginning of the year. We've ended up with around MYR 4.1 billion on CapEx. Partly, specifically on edotCo, a little bit deferred, but I think more controlled investments in our telco businesses. The effect of CapEx as well as OpEx improvement resulted in a 39.3% improvement in EBIT margins. In EBIT in 2024 compared to last year, resulting in a reported near MYR 1 billion profit. We've also been focused on bringing down our debt, most of that at the holding company level, where our net debt to EBITDA down to 2.74.
If you recall, we did say by 2026, we should be at 2.5x net debt to EBITDA. I think we're tracking in line. I expect this to be ahead of our original guidance which we had given to the market. We also focused on high dividend payouts from our OpCo. Last year, we received MYR 1.5 billion dividend from our operating companies, which allows us to declare ten sen dividend. I think important measure for us on how we can bring cash from our operating companies, which have been doing well on their cash flows, to be able to pass on to our shareholders. Now, getting on to the financial numbers. This is all on reported, so I'll have Nik cover on the underlying.
Reported, Nik can talk a little bit more in detail, this is essentially we had to bring in edotCo Myanmar back as continuing business and Nik can explain that later on. I think one of the challenges has been growth for us, specifically in the second half. That's largely in two markets. One is Indonesia and Robi, which is Bangladesh. Bangladesh, the effect of a network shutdown which was during the riots in Bangladesh, where we were asked to shut down, that had an impact on revenues as well as floods and followed by sluggish economic and political situation. Consumers there seems to be careful and spend their spend. Having said that, I think we've started seeing things turning positive with the economic conditions improving.
However, even though with lower revenue growth, we've been focused a lot on driving profitability, which translated into a strong year-on-year growth of EBITDA by 12.3% and also a quarter-on-quarter improvement on EBITDA, as well as EBIT. EBIT more than doubled for the year. We ended up with MYR 3.7 billion EBIT, translating in a strong profit number of MYR 947 million versus loss last year. Last year, if you recall, we had a few impairments, including Nepal as well as edotCo Myanmar. Quickly going through the performance. Underlying profits were MYR 707 million with a very strong EBIT growth.
While the operating companies did well, we did have lesser contribution coming from CelcomDigi, which you are aware, was impacted because of some of one-off impairments being done by CelcomDigi on their assets. Strong cash flows, MYR 2.3 billion. I think that remains our important focus area, coming mainly from EBITDA growth as well as lower CapEx spend. Our balance sheet I've already talked about. Also we did gain by early repayment or buyout of the bonds for during the year of around $275 million. EBIT ahead of the KPI, again, flow down from strong EBITDA growth.
I'm happy to announce second dividend of MYR 0.05, which totals to MYR 0.10 dividend for the year, which is in line with what we had committed at the beginning of the year. Lot of that coming from contribution from our operating companies. No dividend is being paid by any kind of borrowing. This is purely from the cash flows generated from operating companies. Just quickly going through the details. I'll not spend much time on CelcomDigi, as you're aware of their results they had announced earlier. XL, I think, strong performance, but we did see in the last second half. Quarter-on-quarter they still showed an improvement. Second half we did see increased competition on the mobile side, and also some sluggish demand on the home broadband side.
We've seen the improvement in ARPU, but largely coming out of the first half, strong first half performance in 2024. The focus has been on the cost optimization, so you've seen EBITDA margin improvement of 3% to 52% and flow through translating into improved profits. Robi, I think operational excellence lifts profit. However, market sentiments remains weak. As I said earlier, we are seeing positive green shoots coming back with the demand coming back in the market. Dialog ended up with a very strong quarter, and this is largely coming out of improved ARPU in the quarter, and also excellent execution of the merger with Airtel.
Smart continues to be a strong performer with around MYR 120 million of profit, largely coming out of improved ARPU. ARPUs in Cambodia are now upwards of MYR 5, which has been a strong growth in ARPU, and we expect that to stay in the market and that's translating into improved EBITDA margins as well as strong profit and EBIT growth. Last year, Smart itself declared around MYR 120 million of dividend. Link Net, I think one of the units which is still being a bit struggling. One is to do with the overall restructuring of the business with focus around the wholesale fiber business for after transfer of the customers.
Also we've seen the growth on the ServCo side, which is XL being relatively slower as I explained earlier, translating into lesser home connects, being provided by Link Net. I guess that's more to do with the timing. I think we should start seeing that coming back. In fact, the good news is they've been also able to get new businesses from external customers as part of their wholesale fiber than dependence on XL. edotCo, I think some of the CapEx has been phased out, largely in Philippines where we've not seen many orders coming in. They continue to focus on colos as well as cost excellence which is driving their profit growth, further supported by some Forex benefit.
Boost has been narrowing losses despite the fact that they've been investing into the Boost Bank, around close to MYR 69 million of their overall losses were coming out of the money spent in building the Boost Bank. Non-bank losses have come down to around MYR 96 million from MYR 130 million. Our focus is for non-bank to start becoming profitable on a run rate basis by the end of this year or early next year. ADA continues to do well. We've seen a strong growth in revenue, specifically coming from the customer engagement which is SMS A2P business, but also on the e-commerce segment. That growth is translating into strong revenue as well as EBITDA margin improvement.
This business continues for the last six years has been profitable, and this year was one of the better years so far. With that, I'll hand over to Nik to go through the details, OpCo by OpCo. Nik, over to you.
Thanks, Vivek. Good afternoon, everyone. Before I go through the underlying performance, just a quick reminder that underlying performance means that it's presented in a constant currency basis. Just to elaborate a little bit on edotCo Myanmar position. In the quarter four 2024 unaudited financial results, the group has represented the financial results of edotCo Myanmar under continuing operations. Essentially, as at the end of 2024, there was a reassessment done, and we concluded that the proposed intention to exit from the infrastructure segment in Myanmar, based on existing terms and conditions of the SPA, Share Purchase Agreement, is no longer highly probable under the applicable accounting standards, given that the proposed transaction has yet to obtain certain regulatory approvals in Myanmar.
That said, whilst the delay in securing the delayed the required regulatory approvals for the sale is taking longer than anticipated, the intention by Axiata to exit Myanmar continues to remain. As such, we continue to pursue the current sale process, and the SPA actually only lapses on the 4th of April, 2025. As such, discussion on the group's full year financial year 2024 underlying performance and the financial year 2025 headline KPIs does not include edotCo Myanmar.
With that, on this slide, when we look at our underlying performance, on a constant currency basis, revenue grew by 1.9% to MYR 22.4 billion, this is supported by growth from all OpCos with the exception of LinkNet and Dialog. At XL, revenue grew 8.9% on the back of higher mobile data and digital revenue, that resulted in a 4.9% increase in ARPU. At Smart Axiata, saw revenue increase by 8.9% from increases in prepaid enterprise and international business segment, also delivering higher ARPUs. edotCo registered a 4.7% increase in revenue, year-over-year from higher tower and colo tenancies for the year.
Growth was, however, tempered by revenue declines at LinkNet and Dialog. On the right, we see EBIT came in at MYR 3.6 billion for the group. Sorry, it should be MYR 3.5 billion. MYR 3.6 billion on an underlying basis. This was essentially on the back of revenue growth and also cost management across the group as we continue to execute one of our key strategies around operational excellences where we operate. At XL, EBIT grew by 25.1% primarily due to the flow-through from higher revenue or the revenue growth. edotCo EBIT improved by 58.8% on the back of OpEx management and lower D&A expenses.
Robi saw a 23.4% increase in EBIT from exceptional OpEx discipline. Despite the challenges in Bangladesh, which saw that the revenue was essentially flat for the year. For FY 2024, PATAMI was at MYR 707 million, which is more than double what we saw in FY 2023. Key contributors was XL. We saw a 67.1% improvement in PATAMI due to the higher revenue. edotCo was also more than a 100% improvement from the flow-through from higher EBIT. Robi saw PATAMI increase 77.7% from the EBIT improvement despite higher finance costs and tax expenses.
The strong growth in PATAMI shown by the group was achieved despite lower contributions from CDB in FY 2024 compared to the previous year. On the next slide on Adjusted OFCF or AOFCF, this increased by more than 100% year-on-year to MYR 2.3 billion on the back of essentially driven by higher EBITDA and also lower CapEx. This was delivered primarily also by the concentrated discipline in OpEx and CapEx across the OpCos, where there's also improvement in net finance costs primarily driven by the early redemption of the USD of about $282 million of our EMTN long-dated paper.
At the OpCos, there was also a debt reduction overall, and I will cover the numbers, some numbers in the when we talk about the balance sheet slide. On an OpCo by OpCo basis, at the bottom slide, you can see that all OpCos made positive contributions to AOFCF in financial year 2024. The standouts were edotCo, at MYR 604 million, XL MYR 501 million, and Smart MYR 255 million. On the next slide, balance sheet. We continue to focus on reducing our debt across the group.
This has been one of our key priorities for the Axiata Group from last year and going forward. Essentially to reduce our debt and also improve the financial health of our balance sheet. To this end, our net debt to EBITDA ratio has improved further to 2.74 x at the end of 2024, comparing to 3.36x at the end of 2023. On a borrowing basis, we have reduced our borrowings by approximately MYR 1.7 billion. Of which at the whole group, the net reduction was MYR 0.4 billion.
Which accounts for the approximately 25% of the reduction and the remaining reduction of about MYR 1.3 billion was in selected for most for selected OpCos , where the biggest movements was around Link Net. Well, actually for most of course, apart from Link Net and Boost. The debt level also benefited from movements, Forex movements, whereby the ringgit strengthened against the dollar for FY 2024 compared to FY 2023. That said, out of the MYR 1.7 billion reduction, you could account approximately 20% was accountable due to this Forex movement.
The remaining approximately 80% was actually absolute reduction in the debt balances going forward. Another part of our balance sheet was actually balance sheet management is to also reduce our exposure to interest rate and Forex volatility. To this end, we have increased the fixed portion of our group borrowings to 72% in FY 2024 compared to 66% in FY 2023. On Forex volatility, we've also successfully reduced our exposure with, but, especially with the potential further strengthening of the USD and to ringgit that we have seen since the end of the year.
As such, we have increased our foreign hedge borrowing to 47%, including natural hedge positions, which is up from 37% hedged in FY 2023. On our group debt, totaling of MYR 23.2 billion at the end of the year, the average tenure is six point three years, with a weighted blended rate of 5.48%. Coming back now to my last slide, which is on FY 2024 headlines. As you may recall, we had actually set our KPI targets for revenue and EBIT growth for FY 2024, where for revenue growth it was mid-single digit and EBIT growth of mid-teens.
As you can see from the table, we were slightly short of our revenue growth target, achieving 1.9% growth in FY 2024. Mainly due to the challenging macro and competitive environment. Also with regards to Forex negative impact of Forex translation impact. However, on EBIT growth target, we outperformed our target, yeah. On the back of positive cost management by the OpEx where we reached an EBIT growth of 39.3% on a constant rate basis. Just to clarify, there's a slight difference in the 39.3% EBIT growth number compared to what was presented earlier on the year-on-year growth of 48%.
That's mainly because of the FY 2023 baseline for the headline KPI excludes impairments of certain assets. Again, to clarify, these numbers exclude impairments of certain assets and also excludes edotCo Myanmar. With that, I will pass now, hand it back to Vivek to take us through the next set of slides on Axiata moving forward.
Thanks, Nik. Just quickly the guidance for 2025. We are looking at a revenue growth of low single- digit and EBIT of high single- digit. Remember, this is assuming no transactions and business as usual. Once we complete the merger in Indonesia, we will have to revisit these numbers. This is based on existing portfolio of assets we have. CapEx is significantly lower from last year's guidance to around MYR 4.4 billion for 2025. Just to reiterate, if you recall, this is the slide which I had presented when we met in early January as part of our investors and analyst day. Our focus will remain on the portfolio, which is combining all the telco or connectivity businesses.
We have four of them or three of them we have direct control over. The other two are jointly controlled. The focus will remain on operational excellence, ensuring the market sanity prevails and market repair happens with our two enhancements. Also getting the benefits of market consolidation, which we've been the ones driving it over the years, resulting in improved Return On Invested Capital. I think we've seen the benefits of that in most of the markets but there's always inertia after a period of time. The one where we've not seen that impact really is Malaysia, which we do expect things should improve. This actually puts us in a very, fairly good position as a number one or a number two operator in the market.
Eventually, all this will result into a strong dividend play coming in from these assets of ours. As far as the infra and digital businesses are concerned, our focus would be how do we illuminate the value of these businesses and also look at path to monetization. In terms of priority, edotCo, Link Net would be the first one when it comes to path to monetization and ADA and BHSB would be later on. It's not just monetization but also ensuring these businesses have sufficient capital for new investors for them to be able to grow and become more valuable in the market. All this will also mean we look at what the corporate center role would be or the group role would be.
Just on the right-hand side, priority will remain as cash flows and profit. A lot of that will come out of focus on connectivity and convergence business which I talked about, the ones on the top. Looking at prioritization investments into Malaysia and emerging markets and frontier markets would really be around improving the market position and ensuring the balance sheet resilience is maintained. If you go back to the one of the slides which Nik had covered, I think you would see the net debt to EBITDA as well as the gross debt to EBITDA of some of our frontier markets are actually very, very strong now. Overall actually, all three assets put together, we are actually positive when it comes to dollar balance.
I think that's been one of the key focus areas. While I know a lot of investors do have concerns over our presence in frontier market, but I think we've been able to build that strong resilience by managing the balance sheet, the investments and the returns from these assets very well. I think the last bit is really around consolidation in Indonesia, which would be a key step and on our focus. We expect once the synergy starts coming in, that should help increase the value of the Indonesian asset as well as impact on Axiata. What are the risks? I mean, you're all aware of the developments on 5G wholesale network in Malaysia.
We haven't landed, I mean, into the final outcome and the clarity around that would be the one key elements for us to take this risk out of us. Competition remains volatile. Having said that, as I said, broadly, we've seen markets behaving much, much better than they've behaved in the past. Monetization of digital infrastructure assets, I think that's one of the key priorities for us. Having said that, I think the risk is interest rates remain high and whether the right kind of value you will be able to get as part of the monetization exercise. Frontier markets, I think while we manage the balance sheets well but the fragile economic conditions and political environment is something which we will have to watch or, and that might have coming risks off and on in these markets.
Really around value illumination. I think ADA has been fairly strong. It's really about the financial services, fintech business Boost as we move to path to profitability and bring building a digital bank, whether we will be able to get the right kind of value for these assets. Opportunities remain on portfolio optimization, which is really coming from the strong balance sheet, which we are working on. The merger synergies, Dialog Axiata, CDB, as well as once Indonesia is completed, that would be a key opportunity for us and market repair in and cost excellence as a priority for all of our footprint markets. With that, Clare, I'll hand over back to you.
Thank you, Vivek and Nik. Moving on to the Q&A session. I would highlight that we also have representatives from XL, edotCo, Link Net, Robi and Dialog on the call, if any of you have questions for them too. Basically, to answer your questions, you may choose to do this verbally. Just raise your hand to be called out for your turn. Otherwise, you can also type your questions in the chat box. We will now start our Q&A session. Perhaps we will take the question that actually came through via email from Louis from Citi first. He does have a list of questions.
Sure.
Let's go through that while we wait for the rest.
Yeah.
To prepare for their questions. I'll read it out. First question is, does the FY 2025 guidance incorporate second half merger happening in Indonesia?
No, it does not. As I said earlier, that this is based on a BAU and any completion of the transaction, we will come back to restate the guidance.
Okay. Second question, some housekeeping questions over here to understand the Q-on-Q performance of our OpCos. Firstly is for Robi. Question is, what drove Robi's profits up by 59% quarter-on-quarter in fourth quarter despite lower EBITDA as well as EBIT?
I think one of the reasons for that is, the realized losses on Forex, which was higher in quarter three, we saw a gain because we've been paring down some of the debt. And that impact has helped. Also the overall debt has reduced by around 33% to around MYR 9.6 billion. There have been efforts to reduce the debt coming out of the better cash flows and also to some extent benefits of taxation.
Okay. Moving on to his third question, which is actually on Dialog. Again, a Q-on-Q performance question. Whilst Dialog's profits were up Q-on-Q, what was the driver for the performance from the improvement in profits Q-on-Q basis?
Maybe we ask Supun to answer that. Supun, you're on the call.
Yes. Yes, I'm here, Vivek. Hi, everyone. The key improvements come from the price hardening that we continued from Q2, and then the results of that price hardening market repair actions. Big impact coming from the Airtel merger consolidation and synergies resulting from the merger. If you recall, we acquired Airtel end of Q2. Q3 was more consolidation, but big part of synergy started coming from the fourth quarter. That gave a boost to the earnings. We expect to see this going forward as well. Market repair results, price hardening, then Airtel synergies. Apart from that, cost rationalization initiatives which continue.
Thank you, Supun.
Okay. We move on to the question number four, which is on Link Net. Link Net losses were lower despite lower EBITDA and EBIT on a Q-on-Q basis. The question is, what provided the partial relief at the bottom line for Link Net performance in fourth quarter?
I think, one of them is it's really not comparable quarter-on-quarter for Link Net, because till 30th of September, we had, they had the consumer business, the retail business, which was as part of their portfolio, which was 30th September transferred to XL. You had that impact of it taking away a fair amount of EBITDA out to the other side. They, in return, they also got the money of around $120 million, right? That money was also used for paying down some of the debt. You would see the impact on the interest costs coming down because they paid down some of the debt. It's not really comparable.
Second, I think is quarter three, when we did this transaction, there was tax which had to be paid on capital gain on the sale of on the transfer of customers to the ServCo, which was around MYR 104.8 billion. That also had an impact coming in quarter three, which didn't feature in quarter four.
Okay. Thank you, Vivek. Let's move on to question number five. Why did edotCo Malaysia's revenue dropped 12% on a Q-on-Q basis in fourth quarter 2024?
Maybe Adlan is there on the call. Adlan, you're on the call? Anis?
Yeah. Vivek . Yeah.
Yeah. Adlan.
Yeah.
Over.
I think, if you look at the performance for this year and last year of Malaysia, I think that's essentially due to the recognition of JENDELA revenue. JENDELA revenue milestone, there were quite fair bit of recognition in the previous quarter, right? I think, you also see that, if you compare on a year-to-year as well, JENDELA revenue last year, we have recognized a substantial sum compared to 2024.
Okay. Thank you, Adlan. One more question on edotCo. Essentially, what drove continuing operations at PATAMI level into losses in fourth quarter despite the higher EBITDA and EBIT performance on a quarter-on-quarter basis?
Yeah. Okay. If I can take that, I think it's predominantly driven by Forex. Driven from our foreign debt, that US debt that we have. If you see in quarter three, there was the strengthening of the ringgit to dollars, and essentially the reverse happening in Q4. We actually took MYR 316 million Forex losses in Q4. That's driving the performance in negative PATAMI in Q4.
Thank you. Thank you, Adlan. Okay. We do have a question coming from the chat group, I think, it's from Prem. Any updates on the Link Net recapitalization exercise? Can we expect something in 2025?
Yes. Hi, Prem. I'll take this question. With regards to Link Net, it's already... I think as previously reported in the market, actually, Axiata has launched the first phase of a process with a teaser and a invitation sent out to parties to essentially look at a potential recapitalization of Link Net, but not limited to that, right? I think when we went out with the teaser, it's also with the view that there could be control available with the potential of a full divestment as well. We're still early stage of that process. We're currently still in phase one, where parties are signing up with NDAs.
Where the next step will be getting non-binding offers to evaluate whether do we proceed to the second phase of the process.
Thank you, Nik. I think Prem has a follow-up question on edotCo. Question is, Forex gain in edotCo. What was Forex gain in edotCo for the third quarter?
Third quarter, right?
Yeah.
That was MYR 167 million, right?
Yeah.
MYR 197 gain in quarter three and MYR 119 loss in quarter four.
Okay. Thank you. I don't see any other questions. Maybe we give a couple of seconds if there's any further questions today. Just a reminder to everyone, you can put your questions in the chat box, or you could also raise your hand, and we can unmute your line for the question. We do have a question coming through from Tien Wei, who has his hand up. Line will be open for you, Tien Wei.
Hi. Good afternoon, Vivek and Nik. Thanks for the updates. Hi. Maybe just to carry on on the earlier question regarding the Link Net recapitalization. So you may forgive my ignorance on this, but I think the question here is that we also understand that, you know, you are looking at potentially selling the fiber business. Is the sale of the fiber business part of this exercise? Is it separate? You know, I know there is probably some privacy concerns, but if you can give us as much color as you can on your thoughts regarding how the sale of the fiber business is progressing, would really appreciate that. Thank you.
I think, Tien Wei, thanks for the question. Just to clarify, we had launched a process with regards to the recapitalization of Link Net, which also includes the possibility of acquiring the company. As such, it's still very early stage of the process where we are as of today. Just to reiterate, at this point in time, we are in the midst of essentially signing NDAs with interested parties. Where the next stage will be to then.
Where they will be given, some basic information around the investment memorandum, some numbers, so that they can have a look and then, come back with their thoughts in terms of, how they would view Link Net and approach a potential investment into the company.
T hank you.
Just to clarify the processes for Link Net and fiber business is inside the Link Net.
Yeah. That's right.
Link Net also has the enterprise and media business. The process is for the entire company.
Yeah
W hich includes the fiber business.
Yeah, sure. Thank you. I think that's quite comprehensive. Thank you very much.
Okay. Thank you. We do have a question in the chat group from Lee Lian from UOB. Question is, ''Is it possible to elaborate more on competitive landscape going into 2025 for both Malaysia and Indonesia? You mentioned briefly potential for market repair in Malaysia.''
I think, let me start with Indonesia first. I think, while we've seen aggressive posturing by the leader in that market and the others followin. I think as far as XL is concerned, XL has stayed their course on getting the ARPUs and also ensuring that their customers are protected. They've not really seen a big drop in their ARPU, but we've seen that impact on the other players. If you look at the posturing by the two competitors in the market, they've been messaging market repair. We do expect markets should start getting more, and the sanity should come back on the market and the ARPU development in Indonesia. I think that's something we are looking forward to.
Malaysia, I think competition remains intense, specifically, I guess, on the prepaid side. We've not seen major change happening on the market pricing at this point in time. For me to say that there is a potential for market repair in Malaysia would be quite early to make that comment.
Thank you, Vivek. Thank you, Lee Lian. I don't see any further questions online. Perhaps we will end the call and then I hand over to Vivek for his closing remarks for the fourth quarter results briefing then.
Sure, Clare. First of all, thank you everyone to join. I know it's a earning season and you are jumping from one call to another call but thanks for taking out time to listen to us. I think, from our perspective, there's been a journey we are going through. I think year one, when I took over, and then Nik joined later on, we were basically trying to repair our portfolio with focus on those five portfolio of assets, which in my view, I think we've done well. May not be exactly in the timelines which we had expected but given those things require a lot of regulatory as well as the counterparty discussions. That's taken a little while, but things are falling in place.
I think we have a fairly strong market positions wherever we have operations as well as consolidation in the market. I think that puts us in a strong position. Now it's really around portfolio rationalization which is really looking at value elimination, monetization, and continuing to focus on our core connectivity business. That's the journey we are going through. Once we are able to execute some of those steps, able to pare down our balance sheet and make it more sustainable long term, then I think we will have to get into discussion with the investors on what's going to be the next phase for Axiata. At this point in time, we are lot focused on completing some of these transaction we are.
We expect in the meantime, the operations continue to deliver a very strong operational performance. Thank you very much for joining us, and have a good day.
Thank you.