Axiata Group Berhad (AXIATA) Q2 2026 earnings summary

Executive summary

• Earnings more than doubled year-over-year, supported by the Axiata28 strategy, merger synergies, and disciplined capital allocation, with a focus on asset value realization and operational excellence.

• Dividend per share increased to 5.5 sen, up 10% year-on-year, with a commitment to at least 10% annual dividend growth through 2028.

• Strategic capital investments targeted 5G, network modernization, and technology expansion, with the technology portfolio reaching breakeven and ADA expanding via acquisition.

• Revenue for continuing operations declined 3.2% year-over-year to RM5,670.2 million due to forex, but grew 7.3% at constant currency.

• Discontinued operations (XL Group and EIS Group) no longer contribute post-merger and disposal in 2025.

Financial highlights

• Underlying group PATAMI doubled year-on-year to RM717 million in H1 2026, with reported PATAMI at RM316.3 million and PAT at RM525.3 million.

• Revenue on a constant currency basis grew 7.3% year-on-year, while reported revenue declined 3.2% due to forex impacts.

• EBITDA rose 14.1% year-on-year on a constant currency basis and 1.7% on a reported basis; EBIT increased 18.9% year-on-year and 60.7% on a reported basis.

• Group cash stood at RM3,710 million as of June 30, 2026; group borrowings at RM15,746 million, down 11.1% year-on-year.

• Dividend upstreaming totaled RM875 million from operating companies in H1 2026.

Outlook and guidance

• Committed to annual dividend per share growth of at least 10% through 2028, targeting cumulative RM3 billion in shareholder returns.

• Focus on merger synergies, ARPU growth, 5G expansion (except Bangladesh), and technology portfolio investments.

• Holdco debt management and new investors targeted to fund technology growth.

• Telecoms portfolio to benefit from improved market structure in Indonesia, Sri Lanka, and Malaysia.

• Risks include geopolitical tensions, forex volatility, inflation, supply chain disruptions, and 5G monetization challenges.