XL Axiata seen to deliver better performance in H2


Given XL Axiata's steady financial performance, analysts are optimistic about its near-term outlook, despite the fierce competition being faced by the telecommunications industry.

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.

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 1
Cxense type: free
User access status: 3
Subscribe now to our Premium Plan for an ad-free and unlimited reading experience!

Axiata , XL , Indonesia , better , performance , H2 , TA Securities ,

   

Next In Business News

Banks take cardholders data security seriously: ABM, AIBIM
Pasukhas wins RM7.08mil construction contract
RCE Capital 1Q net profit narrows to RM32.22mil
Ringgit ends higher against US dollar for third consecutive day
KSL plans to acquire freehold land in Johor for RM109.88mil
Komarkcorp to sell Komark (Thailand) for RM9.1mil
Iskandar Malaysia records RM368bil in cumulative committed investments as of June 2022
Pentamaster optimistic of another record year
MGB bags RM172.34mil contract, boosts orderbook to RM2.21bil
Buying interest boosts FBM KLCI to one week high

Others Also Read