KUALA LUMPUR (Feb 26): Axiata Group Bhd (KL:AXIATA) said it will not provide any earnings guidance this year amid a restructuring at the biggest Malaysian telecommunications company by revenue.
Ongoing asset consolidation and monetisation would cause fluctuations in its reporting numbers, chief financial officer Nik Rizal Kamil Nik Ibrahim Kamil said at an earnings briefing. The usual revenue and earnings before interest and tax targets will be reinstated from 2027 onwards, he noted.
“Because there are a couple of big-ticket items due to go through in 2026, we will refer to the prospects note in our audited financial statements instead,” he said.
The remarks followed another quarter of red ink as Axiata continued to write down the value of assets and incurred non-cash charges.
Depreciation, impairment and amortisation alone totalled RM915 million in the final three months of 2025, and the company also suffered foreign exchange losses during the quarter.
Portfolio restructuring
Nik Rizal, who will be the chief executive effective June 1, said projects underway include the potential monetisation of the group’s Indonesian fibre infrastructure assets, targeted for completion by 2026.
Axiata has been preparing to monetise select assets, such as its tower arm edotco Group Sdn Bhd, though Nik Rizal refused to provide any details.
Last year, Axiata completed the merger of its unit PT XL Axiata Tbk with PT Smartfren Telecom Tbk and PT Smart Telcom, which created Indonesia’s second-largest mobile network operator by subscribers.
Earlier, the company sold non-core operations and exited some markets, including Myanmar and Nepal.
“Our focus is on earnings, cash flows and return on invested capital,” said outgoing group managing director and chief executive officer Vivek Sood at the same virtual conference. “If that means exiting certain markets or consolidating to ensure long-term viability, we will do that.”
By 2027, Axiata expects its portfolio to be split into two distinct segments — telecommunications operations and technology businesses. The group is targeting a net debt-to-Ebitda ratio of below two times.
Boost investor entry pushed to 2Q
Separately, the entry of a new external investor into its fintech arm Boost Holdings Sdn Bhd has been delayed again, as Vivek said a deal may be only concluded in the second quarter of 2026 instead of the previously announced target by the end of 2025.
The investor is expected to help fund Boost’s future growth requirements, Vivek added.
Boost Holdings operates Boost Bank, a digital banking venture between Axiata and RHB Bank Bhd (KL:RHB). Boost Bank is targeting profitability by 2028, three years after the full rollout of its technology launched in 2025.