KUALA LUMPUR (May 28): Axiata Group Bhd (KL:AXIATA) has removed its low single-digit revenue growth target from its financial year 2025 (FY2025) headline key performance indicators (KPI), as the telecommunications giant shifts its near-term priority towards asset monetisation to pare down debt at the holding company level.
The move came as Axiata ealigned its assets by categorising them into long-and-medium term asset holdings, with potential divestments of latter assets including its tower arm edotco Group Sdn Bhd.
“This medium-term value illumination and monetisable assets will focus on attracting new capital investments, with proceeds strategically dedicated to reducing holding company debt,” said Axiata chief executive officer and managing director Vivek Sood in response to queries from The Edge regarding a consortium comprising Khazanah Nasional Bhd and the Employees Provident Fund (EPF) that is looking to acquire Axiata’s 63% stake in edotco .
Among other assets identified for potential monetisation include its Indonesian broadband provider Link Net, fintech platform Boost and digital analytics company ADA.
These businesses, built over several years, are said to have reached a credible scale and now poised to seek external funding to unlock further growth potential, said Vivek.
“These assets have strong growth potential going forward and will require new funding to capture the growth,” he said. "With corporate activities, revenue development is less relevant as a KPI, but remains a priority.”
Meanwhile, Axiata’s long-term strategic holdings — comprising its digital telco investments in CelcomDigi Bhd (KL:CDB) in Malaysia, XLSMART in Indonesia, Robi in Bangladesh, Dialog in Sri Lanka and Smart in Cambodia — will continue to focus on driving sustainable cash flow and strengthening shareholder returns, he noted.
Notably, Axiata has retained its high single-digit earnings before interest and tax (Ebit) growth target for FY2025, which Vivek said “better reflects the group’s operating performance”.
The shift in portfolio strategy follows The Edge Malaysia's weekly report dated April 21–27, 2025, which reported, citing sources, that a consortium comprising Khazanah Nasional Bhd and the Employees Provident Fund (EPF) may acquire Axiata’s 63% stake in edotco — a monetisation path long considered by the group since an IPO was mooted in 2018.
In FY2024, edotco accounted for nearly 10% of Axiata’s RM22.33 billion external operating revenue and contributed 25.7% to the group’s RM1.6 billion net profit from continuing operations — making it the group’s third-largest profit contributor after its Indonesian and Cambodian operations.