PETALING JAYA: Axiata Group Bhd’s 66.4%-owned Indonesian unit, XL Axiata, is expected to maintain its earnings momentum on the back of steady subscription growth, especially as the pandemic eases in some of its markets.
Given XL’s steady financial performance, analysts are optimistic about its near-term outlook, despite the fierce competition being faced by the telecommunications industry.
Despite no definite guidance for top-line growth, TA Securities in a report said Axiata remains optimistic of a stronger performance by XL in the second half of 2021.
“While the operating environment has been challenging due to competitive pressures over the past year, management highlighted that it has seen some alleviation, with incumbents tightening restrictions on unlimited data offerings, ” it said.
Additionally, Axiata believes that the merger will adjust industry competition to a healthy level and help boost telcos’ profitability, said Kenanga Research.
It said XL’s performance is holding up well in the face of fierce competition.