Axiata Group Berhad (AXIATA) Q3 2025 earnings summary

Executive summary

• Achieved significant progress on the 5x5 strategy and monetisation of infrastructure businesses, with strong operational improvements and balance sheet optimisation.

• Reduced holding company net debt from MYR 11 billion to MYR 7.2 billion, improving net debt/EBITDA to 2.6x, and upstreamed MYR 1.2 billion in dividends.

• Frontier markets (Bangladesh, Sri Lanka, Cambodia) delivered strong profit and cashflow growth, with notable profit increases at Robi and Dialog, supported by merger synergies and ARPU growth.

• Integration of XL Axiata and Smartfren in Indonesia is on track, with merger synergies expected to reach USD150–200 million by year-end.

• Excluding Linknet impairment (MYR 397 million), profit would be MYR 800 million; Linknet faced significant losses due to carveout and higher churn.

Financial highlights

• Group revenue for the first nine months was MYR 8.8 billion, down 8.3% year-on-year due to forex translation; at constant currency, revenue was up 0.4%.

• EBITDA for the period was MYR 4.02 billion, down 6.9% year-on-year (up 3.2% at constant currency).

• EBIT was MYR 1.04 billion, 26.5% lower year-on-year due to lower revenue and Linknet impairment; excluding impairment, EBIT was MYR 1.59 billion, up 11.8% year-on-year.

• PATAMI (continuing operations) was MYR 378 million, up 19.7% year-on-year, but total PATAMI was MYR 403 million, down 65.6% year-on-year due to impairment.

• Group borrowings at MYR 15.8 billion, down 29.1% year-on-year; cash and cash equivalents at MYR 2.4–3.7 billion.

Outlook and guidance

• Maintaining high-single-digit growth expectations for EBITDA and EBIT at constant currency, with performance tracking to meet or exceed headline KPIs for FY2025.

• Underlying PATAMI is expected to improve, supported by higher EBIT and lower finance costs.

• Synergies from mergers (XL Smart, Dialog-Airtel) and ongoing cost excellence initiatives expected to support future margin improvement.

• Monetisation of infrastructure assets remains a strategic focus, though completion is unlikely before year-end.