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Axiata posts $93.9m profit in FY2025
Axiata Group Berhad reported a FY2025 profit of RM364.6 million (US$93.9 million) after one-off impairment and disposals, with underlying PATAMI rising 36.3% year-on-year to RM536.7 million (US$138 million), according to the company.
Net debt to EBITDA improved to 2.5x from 2.6x in 3Q25, supported by debt reduction and disciplined capital management.
Operating free cash flow reached RM1.6 billion (US$411.7 million), up 12.8% year-on-year, enabling debt repayment and dividend payments.
Axiata declared a second dividend of 5.0 sen per share, totaling 10 sen for FY2025. The group completed its 5 x 5 strategy, focusing on market consolidation, balance sheet repair, portfolio simplification, and strengthening operating foundations.
CelcomDigi remains on track to achieve merger synergies of RM700–800 million (US$180-206 million), with timing described as early or post 2027.
The XL and Smartfren merger into XLSMART reported year-on-year and quarter-on-quarter revenue growth despite integration costs.
Frontier markets Dialog and Robi showed strong profitability and debt reduction.
Infrastructure and digital businesses improved margins, with EDOTCO achieving a record 74.1% EBITDA margin and ADA remaining profitable, Axiata said.
🔗 Source: Axiata
🧠 Food for thought
Implications, context, and why it matters.
A stronger ringgit can mask operational progress
- Headline gains can still underplay Axiata’s day-to-day performance when foreign exchange moves against it.
- In 1H25, revenue dropped 10.0% on a reported basis, yet it slipped only 0.9% in constant currency, which points to steadier operations 1.
- Net debt-to-EBITDA improved to 2.5x from 2.6x in 3Q25 after deal-related cash movements.
- Axiata used part of the USD400 million equalisation payment from the XL and Smartfren merger into XLSMART to repay a USD250 million Multi-Currency Term Loan, which tightened the balance sheet 1.
- Boost Bank expanded its loan book to RM167 million by June 2025 from RM17 million in January, which signals faster scaling in the digital unit 1.
Axiata28 shifts the group toward active ownership
- After finishing the 5 x 5 strategy, Axiata aims to run as a “smart Asset Manager” under the “Axiata28” plan 2.
- The plan treats Axiata as a holding company with two engines, a telecoms engine and a technology engine.
- The telecoms engine targets steadier cash from markets that Axiata says have consolidated to three players, which can support pricing stability 1.
- That cash supports the technology engine, focused on scalable platforms plus possible moves into AI and cybersecurity to lift valuation potential 2.
Recent Axiata developments
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