Axiata delivers strong earnings growth driven by improved
operational performance and synergy realisation in 1Q2026

Key Financials for 1Q26

• Reported profit increased by over 100% to RM273.8 million, driven by stronger operating performance, foreign exchange gains and lower net finance costs, despite adverse translation headwinds from a stronger Ringgit.

• On a constant currency basis, underlying PATAMI was RM438.3 million, increasing by over 100% YoY, while revenue rose by 8.5% to RM3.1 billion and EBITDA grew 25.9%.

• Operating free cash flow grew by 19.9% to RM509.7 million, reflecting improved operational performance and disciplined cost management.

• Net Debt/EBITDA improved to 2.51x YoY supported by lower borrowings. Cash balance stood at RM3.6 billion, underscoring a strong and resilient balance sheet.

• The Group received RM165.3 million in YTD dividends from its operating companies.

Key Highlights for 1Q26: First Execution Quarter under Axiata28: Advancing Asia strategy

Telecommunications

• CelcomDigi: Encouraging start to FY2026, underpinned by operational excellence discipline and convergence-led growth. EBITDA and PAT improved by 4.7% and 8.8% respectively, driven by cost optimisation, including approximately RM40 million in net savings across COGS and OPEX, and close to RM100 million in capex efficiencies in 1Q26, while continuing to provide stable returns to shareholders.

• XLSMART: Strong post-merger momentum with integration benefits already evident. Revenue grew 37.6% YoY, supported by mobile revenue recovery, blended ARPU uplift to IDR47.3 thousand and improved market structure. Underlying PAT strengthening to IDR1.4 trillion as integration costs progressed ahead of plan, related costs tapered and synergies began to materialise.

• Dialog: Momentum continues for mobile growth and ahead-of-plan 5G execution. Dialog delivered a record-high YTD 2026 performance, with revenue up 9.2%, EBITDA up 23.1% and PATAMI up over 100% YoY, driven by strong growth momentum across its core segment, as well as merger synergies. Backed by a healthy balance sheet, the company declares its first quarterly DPS of Rs0.70, with an annualised yield of 9.2%.

• Robi: Resilient topline performance amid macroeconomic and geopolitical headwinds. Robi maintained stable performance despite macroeconomic and geopolitical headwinds, supported by disciplined cost management, with EBITDA increasing 21.0% and EBIT improving 28.0% YoY, reinforcing a resilient balance sheet.

• Smart: Prepaid data revenue growth and cost efficiencies drove improved profitability, supporting stable growth and strong cash generation.

• EDOTCO: Stable underlying performance supported by disciplined cost management. Despite forex headwinds, cost discipline supported earnings resilience. Lower depreciation and finance costs contributed to improved profitability, reinforcing the strength of its infrastructure portfolio.

• Linknet: Advancing FibreCo transformation through financial discipline and focused execution. The business is advancing open access initiatives, activating tiered pricing and enhancing enterprise pipeline conversion to support long-term growth and value creation.

Technology

• Boost: Performance elevated by one-off revenue and sustained growth in bank loan book. Boost recorded improved performance, supported by one-off income of RM51.0 million from software and related services, alongside continued bank loan book expansion, reflecting progress in scaling its credit business.

• ADA: Revenue growth driven by solutions business, with continued investment impacting margins. ADA delivered revenue growth of 10.7% YoY, driven by higher contribution from solutions business. However, increased platform and logistics costs impacted margins, with ongoing focus on driving operational efficiency and profitability.

KUALA LUMPUR – Axiata Group Berhad (“Axiata” or “the Group”) today reported a strong start to financial year 2026, delivering improved profitability and cash generation in its first quarter, underpinned by stronger performance across its telecommunications operating companies (“OpCos”) and a turnaround in its technology OpCos, which together form its two core portfolios.

The Group’s performance reflects disciplined execution and continued progress under its Axiata28: Advancing Asia strategy, as Axiata strengthens its role as an active asset manager.

Profit After Tax and Minority Interests (“PATAMI”) exceeded RM273.8 million, growing over 100% year-on-year (“YoY”), supported by improved operating profitability, cost discipline and contributions across the portfolio, with foreign exchange gains and lower financing costs providing additional support.

Reported revenue stood at RM2.8 billion, a decline of 3.2% YoY due to foreign exchange translation effects. On a constant currency basis, revenue grew 8.5% YoY, reflecting continued operational resilience across the Group’s Telecommunications and Technology portfolios.

Earnings Before Interest, Tax, Depreciation and Amortisation (“EBITDA”) increased 11.2% YoY to RM1.4 billion, or 25.9% on a constant currency basis, driven by improved operating performance and ongoing cost discipline across the portfolio.

Operating free cash flow rose 19.9% YoY to RM509.7 million, while cash balances stood at RM3.6 billion, underpinning a resilient balance sheet. Net debt to EBITDA improved to 2.51x, supported by sustained earnings growth and continued balance sheet discipline.

Delivering on the Full Potential of Axiata’s Telecoms and Technology Portfolio

The Group’s Telecommunications portfolio delivered improved operating performance during the quarter, supported by stronger market structures, ongoing integration progress and continued cost optimisation across key markets. 5G rollout continued across most operating companies, with Robi remaining at an early stage of deployment.

• CelcomDigi delivered an encouraging start to the year, underpinned by disciplined cost management, alongside convergence-led growth and continued efficiency gains.

• XLSMART continued to demonstrate strong post-merger momentum, with integration progressing ahead of plan and supporting revenue growth, margin expansion and improved profitability.

• Emerging as the second most valuable company in Sri Lanka, Dialog delivered broad-based growth across its core segments, alongside strong profitability and cash generation.

• Robi maintained resilient topline performance supported by cost discipline amid macroeconomic and geopolitical pressures.

• Smart continued to benefit from prepaid data growth and cost efficiencies, sustaining stable profitability.

• EDOTCO maintained stable underlying performance despite foreign exchange headwinds, with cost discipline and lower finance costs supporting profitability.

• Linknet continued to advance its FibreCo transformation, focusing on operational execution, platform development and long-term value creation.

Meanwhile, the Group’s Technology portfolio exhibited continued progress as they scale their respective platforms.

• Boost benefitted from bank loan book expansion and one-off income from software and related services.

• ADA delivered revenue growth driven by solutions business, although margins were impacted by continued investments to support scaling.

Executing Axiata28: Advancing Asia

The Group’s performance reflects continued execution of Axiata28: Advancing Asia, which defines Axiata’s next phase of growth centred on a focused portfolio of Telecommunications and Technology assets. The strategy is anchored on transforming the portfolio for growth and returns, supported by disciplined capital allocation, active portfolio management and full potential value creation.

Under this framework, Axiata operates as a lean holding company and active asset manager, focused on driving value across its Telecommunications businesses while scaling its Technology portfolio for long-term valuation growth.

Execution priorities remain centred on strengthening earnings quality, improving cash flow generation and maintaining balance sheet resilience, while supporting sustainable shareholder returns, including progressive dividend growth over the medium term.

Tan Sri Shahril Ridza Ridzuan

Chairman of Axiata

The Board is encouraged by the Group’s strong start to the year, underpinned by improved profitability, stronger cash flow and continued balance sheet discipline. Strong profit growth of over 100% and resilient cash flow reflects the progress made in strengthening earnings quality and financial resilience across the portfolio.

 

As Axiata advances into its next phase under Axiata28: Advancing Asia, our focus remains on disciplined capital allocation, consistent execution and sustaining returns across a more focused and resilient portfolio. The Board will continue to prioritise financial strength, governance discipline and long-term value creation for shareholders.

Vivek Sood

Group Chief Executive Officer and Managing Director of Axiata

Our first quarter performance reflects disciplined execution and clear progress in advancing Axiata28: Advancing Asia, with PATAMI of RM273.8 million, alongside stronger EBITDA and cash flow generation, despite currency headwinds on reported revenue.

 

On an underlying basis, performance remained robust, with underlying PATAMI growing by over 100% to RM438.3 million, compared to the corresponding period last year.

 

With the completion of the 5*5 strategy, 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. Under Axiata28: Advancing Asia, we are sharpening our focus on capital discipline, portfolio simplification and unlocking the full potential of our operating companies, enabled by a lean Holding Company and a disciplined asset management approach across our Telecommunications and Technology portfolios.

 

5G rollout is progressing across all of our markets, positioning our operating companies to capture future growth opportunities, with Robi in Bangladesh at an earlier stage of deployment.

 

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.