Axiata Group Berhad (AXIATA) Q1 2026 earnings summary

Executive summary

• Q1 2026 saw underlying profit more than double year-on-year to MYR 438 million, with reported PATAMI at MYR 274 million, driven by strong Telecoms growth, Technology turnaround, and merger synergies, despite a 3.2% revenue decline from currency effects.

• EBITDA rose 11.2% to MYR 1,356 million, EBIT increased 48.4% to MYR 583 million, and underlying revenue grew 8.5% at constant currency.

• 5G rollouts advanced in most markets except Robi, with early monetization in Bangladesh and Cambodia and visible market share gains.

• Portfolio optimization continued with exits from Nepal and Myanmar, and asset monetization efforts for EDOTCO and Link Net.

• Leadership transition announced, with Nik Rizal Kamil succeeding Vivek Sood as CEO effective June 1.

Financial highlights

• Q1 2026 revenue was MYR 2.8 billion, down 3.2% year-on-year due to ringgit strength, but up 8.5% at constant currency.

• EBITDA reached MYR 1,356 million (up 11.2% YoY), EBIT MYR 583 million (up 48.4% YoY), and PATAMI MYR 274 million (up 71.3% YoY); underlying PATAMI was MYR 438 million.

• Group cash stood at MYR 3.6 billion, down 19.5% year-on-year; group borrowings at MYR 15.1 billion.

• Basic EPS from continuing operations was 3.0 sen, up from 1.3 sen YoY.

• Net assets per share stood at 217 sen, down from 222 sen at end-2025.

Outlook and guidance

• Strategic focus remains on Telecoms and Technology portfolios, targeting profitability, valuation growth, and market leadership post-consolidation.

• CapEx is expected to halve year-on-year, with heavy 5G and modernization spend front-loaded in 2026.

• Asset monetization for EDOTCO and Link Net targeted for completion in 2026, pending regulatory approvals.

• Dividend growth of at least 10% year-on-year and leverage below 2x are targeted.

• Group expects to deliver profitability and valuation growth for FY2026 barring unforeseen circumstances.