Axiata posts $97.6m profit year-to-date

Axiata Group Berhad reported a year-to-date profit of RM403 million (US$97.6 million) for the period ending September 30, 2025.

Underlying profit after tax and minority interest rose 19.7% year-on-year to RM378 million (US$91.5 million).

Net debt to EBITDA improved to 2.6x after RM1.9 billion (US$459.9 million) in debt repayments, with operating free cash flow after leases at RM1.5 billion (US$363.1 million).

The group also received RM1.2 billion (US$290.5 million) in dividends from its operating companies.

In Indonesia, XLSMART reported 20.5% revenue growth after its merger.

🔗 Source: Axiata

🧠 Food for thought

Implications, context, and why it matters.

Holdco dividend resumption remains uncertain despite improved leverage

Axiata cut net debt to earnings before interest, taxes, depreciation and amortization (EBITDA) to 2.6x, plus booked RM1.2 billion in operating company (OpCo) payouts. Even so, no clear restart of holding company (Holdco) dividends.
RM1.9 billion of debt went away in repayments. Investors still lack a 2025-2026 maturity map, capex plans across operating companies, and dividend upstreaming capacity (that is cash subsidiaries can remit to the Holdco) versus retained earnings at the OpCo level.
XLSMART (Axiata’s Indonesian mobile operator formed via a merger) posted 20.5% revenue growth 1. Integration costs plus a planned Indonesian rupiah (Rp) 20-25 trillion yearly capex burden may strain cash. Link Net booked a RM167 million impairment, which flags strategic stress. These could cap upstream dividends from Indonesia.

Link Net impairment creates exit paths for strategic and infrastructure buyers

Link Net took a RM167 million impairment as competition in Indonesia’s fixed broadband market heated up. Axiata’s 73.5% stake sits at RM1.46 billion per CIMB (a Malaysia-based investment bank) 2. Solusi Sinergi Digital (Surge, an Indonesian digital infrastructure company) and I Squared Capital (a global infrastructure-focused investment firm) sit as frontrunners at an enterprise value above US$1 billion 2 3.
Its network reached about 2.9 million homes and served approximately 2,400 enterprise customers as of end-2021 4. Household penetration could reach around 27.5% by 2026, while fixed connections could grow at ~14.4% compound annual growth rate (CAGR) in Indonesia 4.