PETALING JAYA: Axiata Group Bhd
, which posted another quarterly loss, is riding on several key catalysts to drive earnings growth over the next two years including infrastructure assets monetisation, merger synergies and the resolution of the 5G space in Malaysia.
Outgoing group chief executive officer and managing director Vivek Sood said the delivery on four key catalysts over the next 12 to 18 months could narrow the discount, whereby Axiata’s valuation remains below analyst consensus of RM2.92 per share.
“First is I think the monetisation efforts, which we are putting in place. It doesn’t mean that we will sell at any price but I mean that’s something we are putting in place.
“Second, I think we talked about the full potential of our operations which is basically business operations generating the best returns,” he said at Axiata’s 2025 financial year results virtual media briefing yesterday.
Succeeding Vivek is current chief financial officer, Nik Rizal Kamil Nik Ibrahim Kamil, who has been appointed as group chief executive officer and managing director, effective June 1.
He said while valuation specifics remain under non-disclosure agreements, regional tower multiples are below pre-pandemic peaks, reinforcing a disciplined approach to value realisation.
A successful divestment would materially reduce gearing and support the group’s target of net debt-to-earnings before interest, taxes, depreciation, and amortisation (Ebitda) below two times by 2028.
“Our target over the next three years is to have a net debt to Ebitda of lower than two times by 2028.
“Obviously, if we do some monetisation, that number could potentially be lower but we want to have the capital and financial discipline to look at our indebtedness and ensure that our net debt to Ebitda is below two times,” Nik Rizal said.
Several “big ticket” transactions are expected in 2026. As a result, management has opted to revert to prospect statements rather than firm KPIs next year, acknowledging potential earnings volatility as restructuring progresses.
Vivek said Axiata’s technology assets - spanning Boost (fintech), ADA (analytics/AI) and Axiata Digital Labs (software engineering) – provide incremental upside without imposing heavy capital burdens. These businesses are largely self-funded or expected to attract external investors.
The telecommunications services provider returned to the black operationally but remained in the red at the headline level in the fourth quarter ended Dec 31, 2025 (4Q25), as impairments continued to weigh on reported earnings even as core performance improved.
The group posted a net loss of RM38.68mil in 4Q25, sharply narrower than the RM224.77mil loss recorded a year earlier. Revenue was broadly flat at RM2.97bil.
A second dividend of five sen per share was declared, underscoring management’s confidence in cash flow resilience despite accounting volatility. This brought the FY25 total dividend to 10 sen per share.
For the full financial year ended Dec 31, 2025, net profit fell more than 60% to RM364.62mil from RM946.82mi previously, largely due to one-off impairments and disposal-related items. Stripping out these mostly non-cash adjustments, core profit stood at RM761.8mil.
Revenue for the year declined 6.25% to RM11.76bil from RM12.54bil, primarily reflecting foreign exchange headwinds and structural portfolio changes.
Despite weaker headline earnings, the group met its FY25 headline key performance indicator of high single-digit earnings before interest and tax (Ebit) growth.
On a constant currency basis and excluding goodwill impairment impact, Ebit expanded 20.2%, signalling stronger operating momentum across key markets.
At the holding company level, Axiata received RM1.7bil in dividends from its operating companies during the year.
The latest results mark the transition from Axiata’s previous “Axiata 5x5” plan – which focused on consolidation, balance sheet repair and portfolio simplification – into a new strategic phase dubbed “Axiata28: Advancing Asia”.
