KUALA LUMPUR (May 25): Axiata Group Bhd (KL:AXIATA) reported a 71% surge in net profit for the first quarter from a year earlier as lower costs offset a decline in revenue.
Net profit at Malaysia’s biggest telecom company by revenue was RM273.8 million for the three months ended March 31, 2026 (1QFY2026), a bourse filing showed. Revenue for the quarter slipped 3.2% year-on-year to RM2.8 billion as all of its foreign subsidiaries’ currencies depreciated against the ringgit.
“The group remains on track to deliver on profitability and valuation growth,” Axiata said.
Axiata stopped providing financial targets since last year as it prioritises asset monetisation to pare down its ballooning debt while past targets have been buffeted by volatile foreign exchange rates.
Since then, the company has unveiled a three-plan that aims to lift annual dividend per share above 10% year-on-year and cut net debt to under two times its operating earnings while maintaining “high single-digit” annualised total shareholder returns.
“Axiata is entering its next phase as a more focused and resilient asset manager, supported by a strong balance sheet and a portfolio of self-sustaining assets,” said Axiata group CEO Vivek Sood.
In the recently-ended quarter, the company’s key telecom businesses Dialog Axiata in Sri Lanka and Robi Axiata in Bangladesh reported a surge in earnings. Smart Axiata in Cambodia also saw better results.
Earnings at Edotco Group, its tower unit, rose 21% while its Indonesian broadband subsidiary Linknet saw 6% decrease. Profit after tax at data analytics company ADA Global declined 67% while its fintech platform Boost were lifted by one-off income from software and related services.
“We are streamlining the portfolio to optimise performance and unlock value, strengthening cash generation from our telecommunications assets while scaling and realising value from our technology businesses to support long-term shareholder returns,” Vivek said.
Axiata has previous stated that it may consider selling a stake in Edotco or list the unit, and has identified LinkNet, Boost and ADA Global for monetisation.
No dividend was declared for the quarter.
Shares of Axiata were down one sen or 0.5% to RM1.94 at the midday trading break, valuing the company at RM17.8 billion ahead of the results announcement.