PETALING JAYA: Axiata Group Bhd
delivered a solid first half of 2026 (1H26), driven by the early execution of its Axiata28: Advancing Asia strategy.
In the second quarter ended June 30 (2Q26), Axiata recorded revenue of RM2.87bil, while reported net profit fell to RM42.5mil, or earnings per share of 0.50 sen, from RM270.8mil, or 2.90 sen, a year ago.
Despite persistent foreign exchange headwinds, underlying profit after tax and minority interests (PATAMI) in 1H26 more than doubled to RM717.2mil, backed by RM5.7bil in reported revenue and a 60.7% surge in earnings before interest and taxes (EBIT).
On a constant-currency basis, revenue rose 7.3% while EBIT jumped 80.9%, lifted by post-merger synergies, network modernisation and tight cost control.
The group's primary telecom engines maintained solid operational momentum. CelcomDigi delivered resilient convergence growth, XLSMART's post-merger integration progressed ahead of plan, and Robi, Dialog and Smart expanded subscriber traction alongside 5G rollouts.
Meanwhile, Linknet showed clear signs of operational recovery, while EDOTCO preserved underlying stability. Axiata’s digital and technology portfolio also scaled higher, led by double-digit revenue expansion at Axiata Digital Advertising (ADA) and continued loan book growth at Boost.
Axiata closed the period with RM3.7bil in cash, reduced holding company borrowings and maintained a prudent net debt/EBITDA ratio of 2.63x, supported by RM875.3mil in dividend inflows from operating units.
Confidence in this cash flow diversification prompted the board to declare a first interim dividend of 5.5 sen per share.
"These results reinforce our confidence in our strategic direction and our ability to generate sustainable returns," said its chairman Tan Sri Shahril Ridza Ridzuan.
Group chief executive officer Nik Rizal Kamil added that operating as a Smart Asset Manager is successfully translating market consolidation and cost discipline into higher earnings, positioning Axiata for long-term value creation.
