Axiata Group Berhad (AXIATA) Q3 2025 earnings summary

Executive summary

• Achieved significant progress on the 5x5 strategy and balance sheet optimization, with net debt/EBITDA at 2.6x and RM1.2bn in dividends upstreamed, reflecting infrastructure monetization and operational improvements across markets.

• YTD25 profit reached RM403mn, with underlying profit at RM800mn excluding Linknet impairment; strong profit and cashflow growth in frontier markets, and merger synergies in XLS.

• Revenue for continuing operations declined 8.3% year-over-year to RM8,778.8 million, mainly due to adverse forex; at constant currency, revenue was up 0.4%.

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

• Discontinued operations contributed a net gain of RM504.1 million from the XL Group disposal and a net loss of RM288.9 million from the EIS Group disposal.

Financial highlights

• Group revenue for the first nine months was RM8,779mn, down 8.3% year-on-year, mainly due to forex translation; at constant currency, revenue was up 0.4%.

• EBITDA for the period was RM4,022mn, down 6.9% year-on-year (up 3.2% at constant currency); EBIT was RM1,043mn, down 26.5% year-on-year, impacted by Linknet impairment.

• PATAMI was RM403mn, down 65.6% year-on-year, impacted by Linknet impairment; underlying PATAMI grew 19.7% year-on-year to RM378mn.

• Group borrowings reduced to RM14.2bn, down from RM21.5bn at year-end 2024; group cash stood at RM2,411.3mn.

• Dividend payout of 5.0 sen per share (RM459.3mn) declared and paid in October 2025.

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 FY25.

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

• CelcomDigi integration expected to complete by end-2026 or early 2027, with full synergy benefits to follow.

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