Profitability factor in Axiata merger proposal

MIDF Research said while XL Axiata has been profit-making, Smartfren has been in the red.

PETALING JAYA: Axiata Group Bhd may face profitability concerns from the potential merger of its Indonesian telecommunications arm PT XL Axiata Tbk (XL Axiata) with PT Smartfren Telecom (Smartfren) in Indonesia.

In a report, MIDF Research said while XL Axiata has been profit-making, Smartfren has been in the red.