Axiata Group Berhad (AXIATA) Q1 2025 earnings summary

Executive summary

• Q1 2025 saw revenue and EBITDA decline due to currency depreciation and macro challenges, but PATAMI more than doubled year-on-year, driven by lower depreciation, forex gains, reduced finance costs, and higher CelcomDigi contribution.

• The group executed its 5x5 strategy, focusing on operational excellence, market repair, value creation, and sustainable dividends by 2026.

• Holdings were realigned into digital telcos, monetizable infrastructure, and digital businesses to drive cash flow and reduce debt.

• RM283 million in dividends were received from OpCos and JCEs in Q1 2025, with net debt/EBITDA at 3.00x.

• Emphasis on de-risking frontier markets, maximizing merger synergies, and value monetization in infra and digital segments.

Financial highlights

• Q1 2025 revenue: RM5,089 million, down 11.3% year-on-year and 5.1% quarter-on-quarter; constant currency revenue up 2.4% year-on-year.

• EBITDA: RM2,454 million, down 12.5% year-on-year; EBIT: RM796 million, down 12.2% year-on-year; PATAMI: RM160 million, up over 100% year-on-year.

• UPATAMI: RM123 million, up 17.4% year-on-year, down 24.4% quarter-on-quarter.

• AOFCF: RM815 million, up 73.7% year-on-year due to capex control.

• Group cash: RM4,954 million, up 1.3% year-on-year; group borrowings: RM22.8 billion, down 10.5% year-on-year.

Outlook and guidance

• Maintains high single-digit EBIT growth guidance for 2025 at constant currency, rebased to exclude XL as a subsidiary.

• Revenue growth expected at low single digit for 2025; focus on market repair, cost excellence, merger synergies, infra asset monetisation, and debt reduction.

• Targeting net debt to EBITDA of 2.5x by 2026; dividend policy: minimum 30% of normalized PATAMI, with RM0.10 per share as a sustainable target.