Axiata 1Q Net Profit Rises To RM273.80 Mln
KUALA LUMPUR, May 25 (Bernama) -- Axiata Group Bhd’s net profit rose to RM273.80 million in the first quarter ended March 31, 2026 (1Q) from RM159.84 million in the same quarter last year.
In a filing with Bursa Malaysia today, it said the higher net profit in the quarter reviewed was driven by higher earnings before interest, taxes, depreciation and amortisation (EBITDA), foreign exchange (forex) gains, and lower finance costs.
Nonetheless, it said the higher earnings in 1Q was partially offset by higher taxes and a lower share of profits from associates, impacted by share of losses incurred by XLSMART.
Revenue, however, decreased to RM2.80 billion during the quarter from RM2.89 billion previously due to unfavourable impact of foreign currency translation due to the depreciation of the operating companies’ (OpCos) currencies against the ringgit.
“At constant currency, group revenue increased by 8.5 per cent, contributed by all OpCos except for Linknet. Group EBITDA and earnings before interest and taxes (EBIT) rose by 11.2 per cent and 48.4 per cent to RM1.36 billion and RM583.4 million respectively.
“At constant currency, group EBITDA and EBIT jumped by 25.9 per cent and 67.9 per cent respectively, mainly from revenue growth,” it said.
It added that Robi recorded a drop in revenue to RM820.5 million; Dialog’s revenue decreased to RM604.8 million; Smart’s revenue decreased to RM441.5 million; EDOTCO’s revenue fell to RM545.6 million; Linknet’s revenue slid to RM155.4 million; while ADA’s revenue increased to RM250.0 million; and Boost’s revenue grew to RM106.4 million.
It noted that following the completion of the merger between PT XL Axiata Tbk (XL) (now known as PT XLSMART Telecom Sejahtera Tbk (XLSMART) and PT Smartfren Telecom Tbk (Smartfren) on April 16, 2025 and the disposal of EDOTCO Investments Singapore Pte Ltd (EIS) on June 13, 2025, the group’s share of the financial results of XLSMART is recorded under continuing operations from April 16, 2025 onwards. EIS and XL’s financial results prior to the completion of the transaction dates are presented as discontinued operations, it added.
On prospects, Axiata said the ongoing geopolitical tensions in West Asia contributed to global economic uncertainty and volatility in energy prices, forex fluctuations, and tighter global financial conditions.
“The group is mostly exposed to second-order effects through its reliance on global vendors, international financing and overall regional economic sentiment that may affect consumer demand.
“The group continues to closely monitor the situation, with prudent liquidity and risk management, as well as periodically assessing potential impact on the group’s operations and financial performance,” it said.
Axiata said taking into consideration opportunities and risks for the financial year ending Dec 31, 2026 (FY2026), the group remains on track to deliver profitability and valuation growth.
“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,” said Axiata chairman Tan Sri Shahril Ridza Ridzuan.
Meanwhile, its group chief executive officer and managing director, Vivek Sood, said its 5G rollout is progressing across all of its markets, positioning OpCos 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,” he added.
-- BERNAMA