Axiata Group Berhad (AXIATA) Q2 2025 earnings summary

Executive summary

• First half 2025 profit reached RM 431 million, with a 5 sen dividend declared, supported by strong operational performance and execution of strategic initiatives, including the XL-Smartfren merger and Myanmar exit.

• Portfolio optimization advanced with the XL-Smartfren merger in Indonesia, exit from Myanmar, and upstreaming of RM 1 billion in dividends from OpCos.

• Medium-term value illumination and monetization plans are progressing, especially in infrastructure businesses.

• Discontinued operations contributed a net gain, mainly from the disposal of XL Group (RM505.2 million gain) and a loss from EIS Group (RM296.5 million loss).

• Total PAT increased 12.1% to RM512.3 million, and PATAMI more than doubled to RM430.7 million.

Financial highlights

• Revenue for H1 2025 was RM 5.86 billion, down 10% year-on-year due to forex translation; constant currency revenue was nearly flat at -0.9%.

• EBITDA for H1 2025 was RM 2.66 billion, down 8.5% year-on-year, but up 2.3% on constant currency and 21.9% quarter-on-quarter.

• Reported EBIT was RM 700 million, down 26.3% year-on-year; on a constant currency basis, EBIT grew 16% to RM 1 billion.

• PATAMI was RM 431 million, more than doubling year-on-year, driven by a RM 505 million gain on XL disposal and a RM 187 million loss on EDOTCO Myanmar disposal.

• UPATAMI grew 39% year-on-year and over 100% quarter-on-quarter, aided by normalization of XLSMART depreciation and Link Net goodwill impairment.

Outlook and guidance

• High single-digit EBIT growth guidance for 2025 reaffirmed, with confidence in meeting headline KPIs, excluding goodwill impairment.

• Market repair and consolidation expected to continue in key markets, with synergy benefits from mergers anticipated in coming years.

• CapEx guidance for 2025 is RM 3 billion, with catch-up expected in the second half due to phasing and spectrum auction timing.