PETALING JAYA: Axiata Group Bhd
’s strategy to unlock the full value of its assets while enhancing shareholder returns is beginning to bear fruit.
The Axiata28: Advancing Asia strategy was rolled out at the beginning of this year and signalled a shift for the group in becoming a smart-asset manager.
Managing director and group chief executive officer Nik Rizal Kamil said the group adopted a whole core model whereby its portfolio was divided into two distinctive segments – technology and telecommunications.
“We expect this to drive our growth and valuation for the next two and a half years. We’ve also looked into new and higher growth opportunities for both segments,” he said last Friday.
According to Nik Rizal, the strategy has enabled Axiata group to increase profitability while ensuring frequency and consistency in dividend upstreaming.
During the period, Axiata received RM875.3mil in dividends from its portfolio of five operating companies.
“The board declared a 5.5 sen per ordinary share which was a 10% year-on-year (y-o-y) growth. And this is how we are committed to returning at least RM3bil to shareholders by 2028,” he added.
Nik Rizal also pointed out the group has continued investment in network leadership, which included Dialog in Sri Lanka.
“In Robi Axiata PLC, we have invested in the modernisation of networks around the Dhaka region. In Indonesia, XLSmart has invested into 5G and spectrum acquisition. Smart in Cambodia has also deployed 5G and obtained a fibre licence,” he explained.
On its technology segment, Nik Rizal said the group has continued scaling capabilities and building valuation.
“ADA, our AI experience company, completed the acquisition of Algonomy in India, adding deep AI capabilities in personalisation, merchandising and supply chain intelligence. The combined businesses extend ADA’s reach to 34 markets in Asia Pacific, the United States, Middle East, North Africa and Europe,” he said.
ADA delivered a 15.9% growth in revenue in the first quarter (1Q), and Nik Rizal said he expects an even stronger second half of 2026.
As for Boost Holdings Sdn Bhd, the fintech arm secured International Finance Corp as an investor at the end of July this year at a post-evaluation of US$340mil.
He said Boost will continue to be on the lookout for more investors to extend the runaway of what it wants to pursue.
Separately, Axiata’s acting group chief financial officer Komathi Balakrishnan said underlying profit after tax and minority interests more than doubled to RM717mil, backed by RM5.7bil in reported revenue and a 60.7% surge in earnings before interest and taxes.
“The key drivers of this were performance from Robi that registered a 7.1% growth which improved prepaid data revenue. Dialog reported a 9.3% increase in revenue coming from strong activities in the country, especially related to the World Cup, as well as cricket tournaments, that really has increased their prepaid data revenue,” she explained.
She said despite being adversely impacted by the foreign-exchange translation impact, inflationary effects and chain cost pressures, the group performed well backed by good programmes across on-cost disciplines, as well as capital expenditure management.
Axiata’s balance sheet shows cash standing at RM3.7bil which included RM297mil from the XLSmart merger. Group borrowings were down 11% y-o-y.
Meanwhile, on a quarterly basis, Axiata posted a lower profit of 84.3% at RM42.52mil for the 2Q ended June 30, 2026 compared to RM270.8mil in the same quarter a year ago.
Revenue was also 3.04% lower at RM2.87bil versus RM2.96bil.
In a filing with Bursa Malaysia, the group said both topline and bottomline were lower mainly due to its foreign companies depreciation against the ringgit.
