Axiata reports stronger earnings in 1H26,
declares 5.5 sen dividend

Key Financials for 1H26  

• Underlying PATAMI more than doubled to RM717.2 million. On a constant currency basis, revenue grew 7.3%, EBITDA increased 14.1% and EBIT rose 80.9%, demonstrating stronger underlying portfolio performance.
• Reported revenue was RM5.7 billion, 3.2% lower YoY, primarily reflecting currency translation effects.
• The Group generated RM678.3 million in operating free cash flow, while stepping up investment in network modernisation and 5G deployment across key markets.
• The Group maintained RM3.7 billion in cash while Net Debt/EBITDA stood at 2.63x.
• HoldCo borrowings declined YoY, reflecting continued capital and balance sheet discipline.
• The Group received RM875.3 million in 1H26 dividends from its operating companies.
• Axiata declares first interim dividend of 5.5 sen per ordinary share, a 10% YoY growth.

Key Highlights for 1H26

Telecommunications

• CelcomDigi: Operational excellence strengthens efficiency and shareholder returns. Revenue remained resilient at RM6.4 billion in 1H26, supported by continued growth momentum across Mobile, Home & Fibre and Enterprise Solutions. RM141 million in operational efficiency savings supported stronger operating performance with EBITDA and EBIT growth exceeding revenue growth. The company maintained its commitment to sustainable shareholder returns with an interim dividend of 3.4 sen declared for Q2 2026.
• XLSMART: Strong post-merger momentum with integration and synergies driving growth. Revenue grew 25.8% YoY, supported by sustained data demand, a stable subscriber base and higher ARPU. Continued integration and optimisation accelerated synergy realisation and strengthened operating performance, supporting EBITDA growth of 24.6%, a 45.7% EBITDA margin and underlying PAT of IDR2.7 trillion.
• Robi: Sustained growth supported by data demand and network modernisation. Strong data demand and disciplined cost management supported continued earnings growth, with EBITDA increasing 15.6% and PATAMI rising 29.3% YoY. Robi maintained strong operating momentum and a resilient balance sheet while advancing its network modernisation in Dhaka to enhance connectivity for its customers.
• Dialog: Strong execution supports shareholder returns and 5G leadership. EBITDA grew 22.9% while profit more than doubled YoY, supported by mobile growth and disciplined cost management. Strong performance enabled Dialog to continue rewarding shareholders quarterly, declaring 1H26 dividends of Rs1.40 per share, while sustaining investments to strengthen its 5G leadership position.
• Smart: Strong performance supported by data demand and 5G investment. Continued growth in prepaid mobile data usage and higher customer spending supported healthy performance in 1H26. Smart delivered PATAMI of USD65.1 million and maintained a strong balance sheet, while continuing to invest in 5G to support future growth.
• Linknet: Recovery momentum builds through subscriber additions and improving enterprise traction. Sequential improvements in revenue and EBITDA reflected encouraging progress in the second quarter, supported by subscriber additions and improved enterprise demand. Continued execution remains focused on delivering sustainable growth and long-term value.
• EDOTCO: Resilient underlying performance despite forex headwinds. Reported performance was affected by foreign exchange translation impacts and commercial settlements in Malaysia and Bangladesh. Despite this, underlying operating momentum remained resilient, supported by 3.7% YoY growth in tenancies.

Technology  

• ADA: Double-digit revenue growth driven by Solutions expansion. ADA delivered 1H26 revenue growth of 15.9%, supported by continued expansion of its Solutions business. Earnings moderated as the company invested in platform enhancement and AI capabilities to support future growth. The acquisition of Algonomy, a leading AI-powered commerce platform trusted by more than 400 brands globally, strengthens ADA's capabilities in Commerce and Personalisation segments, advancing its position as a leading data and AI experience company.
• Boost: Loan book expansion supports growth momentum. Revenue increased 67.3% YoY, driven by continued growth in its loan book and RM51.0 million in one-off income from software and related services. The bank’s loan book expanded to RM418.0 million as at June 2026, reflecting growing demand for its lending products. Boost continues to scale its digital banking and financial services platform, with growth initiatives expected to drive stronger momentum ahead.

KUALA LUMPUR, 28 AUGUST 2026 – Axiata Group Berhad ("Axiata" or "the Group") continued to advance its Axiata28: Advancing Asia strategy in the first half of 2026, delivering stronger portfolio performance across its Telecommunications and Technology businesses. During the period, the Group received RM875.3 million in dividends from its operating companies, reflecting increasingly diversified cash flows across the portfolio and supporting long-term shareholder returns.

The results mark the first six months of execution under Axiata28: Advancing Asia and provide early evidence of the Group's focus on stronger portfolio performance, broader portfolio contributions and sustainable shareholder returns.

Despite foreign exchange headwinds, the Group delivered strong underlying growth. Underlying PATAMI more than doubled to RM717.2 million, driven by stronger contributions from its operating companies.

On a constant currency basis, revenue grew 7.3%, Earnings Before Interest, Tax, Depreciation and Amortisation (“EBITDA”) increased 14.1% and Earnings Before Interest and Tax (“EBIT”) rose 80.9%, supported by merger synergies, operational improvements and disciplined cost management across the portfolio.

On a reported basis, revenue stood at RM5.7 billion, while EBITDA grew 1.7% and EBIT increased 60.7% year-on-year (“YoY”).

Axiata maintained a resilient balance sheet with RM3.7 billion in cash while continuing to invest in network modernisation and 5G deployment across its markets. Despite increased investment across the portfolio, Holding Company borrowings declined YoY, reflecting disciplined capital allocation, balance sheet discipline and liability management. Net Debt/EBITDA stood at a prudent 2.63x.

Portfolio Highlights

Axiata's Telecommunications businesses remained the Group's primary earnings and cash generation drivers in the first half of 2026, supported by improving market conditions, merger synergies and disciplined execution across the portfolio. 5G deployment continued across all operating markets, with Bangladesh remaining at an earlier stage of rollout.

• CelcomDigi continued to deliver resilient performance through operational excellence, convergence growth and disciplined cost management.
• XLSMART maintained strong post-merger momentum, with integration progressing ahead of plan and supporting stronger profitability.
• Robi strengthened its market position through subscriber growth, higher data consumption and disciplined execution despite a challenging operating environment.
• Dialog delivered another strong performance, combining mobile growth, cost discipline and shareholder returns while maintaining its 5G leadership position.
• Smart continued to benefit from sustained data demand, higher ARPU and a strong balance sheet.
• Linknet showed encouraging signs of operational recovery, supported by subscriber growth and improving enterprise traction.
• EDOTCO maintained resilient underlying operating momentum despite foreign exchange translation headwinds.

The Technology portfolio continued to make progress towards profitability while scaling for future growth.

• ADA sustained double-digit revenue growth, driven by its Solutions business and increasing demand for digital commerce, data and AI-enabled services.
• Boost delivered stronger performance supported by loan book expansion and continued growth in its digital financial services platform.

Collectively, these businesses are generating stronger earnings, broader cash flows and increasing dividends, reinforcing Axiata's ability to deliver sustainable shareholder returns under Axiata28: Advancing Asia.

Delivering on Axiata28: Advancing Asia

Across the Group, stronger execution, merger synergies and operational improvements are translating into stronger financial performance and broader contributions from across the portfolio.

As a Smart Asset Manager, Axiata focuses on helping its businesses realise their full potential while directing capital towards opportunities that create long-term value. Broader contributions across the portfolio and improving underlying performance demonstrate the strength of this approach and support its commitment to sustainable shareholder returns.

Tan Sri Shahril Ridza Ridzuan

Chairman of Axiata

The Board is encouraged by the stronger performance across Axiata's businesses and the growing contribution from across the Group. These results reflect the strength of Axiata's portfolio and reinforce our confidence in the Axiata28: Advancing Asia strategy.

 

Our focus remains on maintaining financial strength, supporting sustainable shareholder returns and delivering long-term value creation. In light of this, the Board is pleased to declare a first interim dividend of 5.5 sen per ordinary share, underscoring our commitment to delivering sustainable value for shareholders.

Nik Rizal Kamil

Group Chief Executive Officer and Managing Director of Axiata

The first half of 2026 demonstrates the strength of our Telecommunications and Technology portfolios and the progress we are making under Axiata28: Advancing Asia.

 

We are increasingly seeing the benefits of stronger market structures, merger synergies, operational excellence and disciplined capital allocation flowing through to stronger earnings, broader portfolio contributions and sustainable shareholder returns.

 

As a Smart Asset Manager, our role is to enable each business to realise its full potential while allocating capital where it can create the most value. This allows us to strengthen shareholder returns while building a more resilient and diversified Axiata.