Axiata cut its US dollar debt by US$2.7bil in the first nine months of 2024, said RHB Research.
PETALING JAYA: Axiata Group Bhd
plans to further pare down debt in 2025 and 2026 via proceeds from asset monetisation and equalisation of stakes in its units and cost optimisation.
The asset monetisation will be via EdotCo Group Sdn Bhd, PT Link Net Tbk, digital services, and the equalisation of a stake of US$475mil in PT XL Axiata Tbk pursuant to its merger with PT Smartfren Telecom Tbk in Indoesia.
Axiata cut its US dollar debt by US$2.7bil in the first nine months of 2024, said RHB Research.
The group lowered its cost by 17% in 2024, compared with 18% in 2023, and the figure is forecast to be 19% this year on reduced headcount and the use of digital tools and artificial intelligence.
During Axiata Group’s 2025 Analyst and Investor Day on Monday, RHB Research said management tightened its narrative on balance sheet repair and optimisation, progressive dividend capacity of 10 sen per share and portfolio transformation through asset monetisation.
RHB Research said it continues to like the stock with balance sheet de-leveraging and operational improvements as share price catalysts.
It retained its “buy” call on Axiata with a target price of RM3.40 a share.
