Axiata Group Berhad (AXIATA) Analyst & Investor Day 2025 summary

Strategic priorities and business transformation

• Focused on value creation through telco synergies, Indonesia transformation, frontier market resilience, infrastructure value, and digital business growth.

• Major structural transformation in Indonesia, including the XL Axiata–Smartfren merger, targeting 27% market share and USD 300–400M annual synergies.

• Transitioning to an asset-light, tech-driven model with portfolio optimization, market repair, and consolidation in key markets.

• HoldCo role redefined to focus on joint-control entities, capital allocation, and shareholder protection as subsidiaries decrease.

• Sustainability framework deepened, targeting net zero by 2050 and impacting 23M lives by 2025.

Financial performance and capital management

• Net debt/EBITDA reduced from 3.36x to 2.59x by Q3 2024, with total debt down by RM3.2B since 2022 and strong cash flow generation.

• HoldCo cost reduced by 15–20% since FY21, with further reductions planned through headcount reduction and digitalization.

• Liability management included repurchasing discounted bonds, reducing USD debt exposure, and optimizing capital structure.

• Dividend per share maintained at MYR 0.10 for 2025, with potential increases as HoldCo debt declines and sustainable dividends enabled.

• Capital allocation focused on emerging markets, with divestments and value realization in non-core assets.

Market and operational highlights

• XL Axiata and Link Net integration positions XL as Indonesia’s No. 2 ISP and Link Net as the second-largest FibreCo, targeting 8.5M home passes by 2027.

• EDOTCO delivered 15% CAGR in revenue and 22% CAGR in EBITDA over three years, with Malaysia as the largest value contributor.

• Digital businesses (ADA, Boost) achieved strong revenue growth, with ADA valued at $550M and expanding globally, and Boost Bank surpassing deposit targets and aiming for profitability by 2026.

• CelcomDigi merger synergies on track, with RM800M OPEX savings expected post-2027 and improvements in network, IT, and retail productivity.

• Frontier markets: ARPU and EBITDA growth in Dialog, Smart, and Robi, with reduced USD debt exposure.