CGSI Research said the ultimate value-unlocking for Axiata will come from the distribution of its three key assets – CelcomDigi, XLSmart in Indonesia, and Edotco – back to shareholders.
PETALING JAYA: Axiata Group Bhd
has posted a net loss of RM27.4mil for the third quarter ended Sept 30, 2025 (3Q25), from a net profit of RM976.7mil a year ago, mainly dragged by an impairment of goodwill totalling RM213.4mil during the quarter.
Excluding the impairment of goodwill, its group profit after tax and profit after tax, amortisation, and minority interest would have decreased to RM227mil and RM136.5mil, respectively.
Axiata attributed the poorer performance to lower earnings before interest, taxes, depreciation and amortisation (Ebitda) and foreign-exchange losses in 3Q25, as well as lower gain on early redemption of debt.
It was also impacted by share of profits from associates, impacted by the share of losses of XLSMART mainly due to integration costs and accelerated depreciation of assets, partially offset by lower finance costs, taxes, depreciation and amortisation.
Revenue declined by 4.7% year-on-year (y-o-y) to RM2.92bil, mainly due to unfavourable foreign currency translation impact as a result of operating companies (OpCos) currencies depreciating against the ringgit.
For the nine-month period, its net profit plunged 66% to RM403.3mil, or an earnings per share of 4.4 sen. Revenue dropped by 8.3% y-o-y to RM8.78bil, mainly due to unfavourable foreign currency translation impact as a result of OpCos currencies depreciating against the ringgit.
In a statement yesterday, Axiata chairman Tan Sri Shahril Ridza Ridzuan said, “Axiata’s performance this quarter reflects the strength of our strategy and the resilience of our portfolio across diverse markets.
“Our disciplined approach to capital management and operational efficiency continues to position the group for sustainable growth.
“We remain committed to creating long-term value for our shareholders while navigating an evolving macroeconomic landscape.”
Group chief executive officer and managing director Vivek Sood said the group’s disciplined balance sheet optimisation has reduced net debt/Ebitda to 2.6 times, reinforcing its financial resilience and positioning it well to achieve its 2026 targets.
“In our frontier markets, we saw strong profit and cashflow growth, reflecting the effectiveness of our operational strategies, resilient balance sheet and cost efficiencies. At XLSMART, merger synergies are ahead of schedule, and we are witnessing early signs of market repair,” he said.
