Axiata Group Berhad Q1 2026 Financial Results: Comprehensive Review and Investor Insights

Key Financial Highlights

• Revenue: RM2.80 billion for Q1 2026, down 3.2% year-on-year (YoY) from RM2.89 billion, primarily due to adverse foreign currency translation. At constant currency, revenue grew 8.5% with all Operating Companies (OpCos) except Linknet showing growth.
• EBITDA: Increased by 11.2% YoY to RM1.36 billion, with constant currency growth of 25.9%.
• EBIT: Up 48.4% YoY to RM583.4 million (constant currency growth of 67.9%).
• PAT (Profit After Tax): Surged more than 100% to RM387.8 million (from RM117.2 million YoY).
• PATAMI (PAT Attributable to Minority Interest): More than doubled to RM273.8 million (from RM42.5 million YoY).
• Discontinued Operations: No contribution in Q1 2026, compared to RM191.3 million in Q1 2025.
• Dividend: A tax-exempt dividend of 5.0 sen per share (RM459.4 million) was paid on 29 April 2026 (after the reporting period).
• Net Assets per Share: 217 sen as at 31 March 2026, down from 222 sen as at 31 December 2025.

Detailed Segmental Performance

• Robi: Revenue decreased by 4.2% to RM820.5 million (constant currency: +8.1%). EBITDA up 7.1% (+21.0% at constant currency), PAT up 64.0% (+85.2% at constant currency) to RM75.3 million, driven by strong prepaid growth and cost controls.
• Dialog: Revenue fell 7.0% (to RM604.8 million) due to LKR depreciation; constant currency growth was 9.2%. EBITDA up 4.8% (+23.1% constant currency), PAT up 89.4% (+>100% constant currency) to RM117.5 million, benefiting from cost rescaling and lower finance costs.
• Smart: Revenue and EBITDA both slipped 4.3% YoY due to USD depreciation, but at constant currency grew 7.3% and 7.4%. PAT down 4.4% YoY (up 7.2% constant currency) at RM127.6 million, with higher finance costs partially offset by lower depreciation.
• EDOTCO: Revenue and EBITDA declined 6.6% and 3.1% to RM545.6 million and RM396.4 million, but constant currency growth was positive. PAT rose 10.9% (21.2% at constant currency) to RM98.6 million on higher EBITDA and FX gains.
• Linknet: Revenue plunged 29.5% (constant currency: -18.4%) due to lower broadband and broadcasting revenue. EBITDA dropped 37.6% and PAT recorded a loss of RM102.7 million.
• ADA: Revenue grew 10.7% to RM250.0 million. EBITDA fell 37.8% and PAT dropped 67.4% to RM6.9 million due to higher operating costs and FX losses.
• Boost: Revenue more than doubled to RM106.4 million, primarily from one-off software platform solutions. EBITDA and PAT improved by >100% to RM17.1 million and RM0.1 million respectively.

Balance Sheet and Liquidity

• Total Equity: RM23.76 billion as at 31 March 2026, compared to RM24.07 billion as at 31 December 2025.
• Borrowings: RM15.10 billion total (current + non-current), with 67% in foreign currencies (notably USD, IDR, LKR, PHP), exposing the Group to FX volatility.
• Cash & Cash Equivalents: RM2.41 billion, down from RM3.65 billion YoY, reflecting significant repayments of borrowings and Sukuk.
• Capital Commitments: RM842.6 million as at 31 March 2026, up from RM536.9 million at end-2025—indicative of ongoing investment in network and infrastructure.

Strategic & Corporate Updates

• Market Consolidation: Major consolidations completed in Indonesia, Sri Lanka, and Malaysia. PT XL Axiata merged with PT Smartfren Telecom; results of XLSMART now included in continuing operations.
• Technology Portfolio: Technology businesses (ADA and Boost) turned profitable in Q1 2026, with plans for external funding and valuation growth.
• Share-Based Issuance: 1.89 million new ordinary shares issued under the Long Term Incentive Plan (total RM4.07 million).
• Sukuk Repayment: Axiata SPV2 Berhad fully repaid a USD500 million Sukuk (RM2,014.3 million); related hedging reserves of RM93.6 million reclassified to P&L—this FX gain is a positive, price-sensitive item for investors.
• Dilutions and Accretions: Minor dilutions in Linknet and Alam Mindscape Mobile; accretion in Digital Health (Private) Limited—no material impact this quarter.
• Dividend: Shareholders will receive 5.0 sen per share (RM459.4 million), paid after quarter end—a key point for income investors.

Legal and Regulatory Matters

• Material Litigations: Several ongoing tax and regulatory disputes, mainly in Bangladesh (Robi). Total disputed amounts are significant (hundreds of millions of RM), but most cases are long-standing and management believes they are either indemnified, under appeal, or adequately provided for. No immediate cash outflow expected, but investors should monitor for developments.

Outlook & Guidance

• FY2026 Guidance: Management remains optimistic about profitability and valuation growth, with continued focus on lean operations, risk management, and capital recycling into higher-return opportunities.
• Risks: FX volatility, global economic uncertainty (especially from geopolitical tensions), and regulatory actions remain key risks for the Group.
• Opportunities: Market consolidation in key markets and technology portfolio profitability are expected to drive future shareholder value.

Potential Share Price Movers / Price-Sensitive Information

• Surge in PAT and PATAMI for continuing operations (more than 100% growth YoY).
• Strong turnaround in Technology portfolio (ADA and Boost now profitable).
• Payment of a 5.0 sen per share dividend (RM459.4 million) after the quarter end, returning value to shareholders.
• Full Sukuk repayment and related FX/hedging gains (over RM93 million) boosting quarterly profits.
• Ongoing material litigations—while not new, any negative judgment or settlement could impact future profits and cash flows.

Overall, the Q1 2026 results are robust, with strong profit growth, improved cost management, and enhanced shareholder returns. However, continued FX volatility and sizable legal claims in Bangladesh pose risks. Investors should closely watch developments in these areas.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own due diligence or consult a professional advisor before making investment decisions. The author accepts no liability for any direct or indirect loss arising from use of this information.

Versi Bahasa Malaysia

Keputusan Kewangan Suku Pertama 2026 Axiata Group Berhad: Sorotan Penting untuk Pelabur

Sorotan Kewangan Utama

• Hasil: RM2.80 bilion untuk Q1 2026, turun 3.2% tahun ke tahun disebabkan impak tukaran mata wang asing yang tidak menguntungkan. Pada kadar tetap, hasil meningkat 8.5% dengan hampir semua syarikat operasi menunjukkan pertumbuhan kecuali Linknet.
• EBITDA: Meningkat 11.2% kepada RM1.36 bilion (kadar tetap: +25.9%).
• EBIT: Naik 48.4% kepada RM583.4 juta.
• PAT: Melonjak lebih 100% kepada RM387.8 juta.
• PATAMI: Meningkat lebih 100% kepada RM273.8 juta.
• Dividen: 5.0 sen sesaham (RM459.4 juta) telah dibayar pada 29 April 2026 (selepas tempoh pelaporan).
• Aset Bersih Sesaham: 217 sen setakat 31 Mac 2026.

Prestasi Segmen Terperinci

• Robi: Hasil turun 4.2%, EBITDA naik 7.1%, PAT naik 64.0% kepada RM75.3 juta (semua pada kadar tetap lebih kukuh).
• Dialog: Hasil turun 7.0%, EBITDA naik 4.8%, PAT naik 89.4% kepada RM117.5 juta.
• Smart: Hasil dan EBITDA turun 4.3%, PAT turun 4.4% kepada RM127.6 juta.
• EDOTCO: Hasil dan EBITDA turun, tetapi PAT naik 10.9% kepada RM98.6 juta.
• Linknet: Hasil jatuh 29.5%, EBITDA turun 37.6%, PAT rugi RM102.7 juta.
• ADA: Hasil naik 10.7%, EBITDA turun 37.8%, PAT turun 67.4% kepada RM6.9 juta.
• Boost: Hasil lebih dua kali ganda, EBITDA dan PAT juga meningkat lebih 100%.

Kunci Imbangan & Kecairan

• Ekuiti Keseluruhan: RM23.76 bilion pada 31 Mac 2026.
• Pinjaman: RM15.10 bilion, 67% dalam mata wang asing — risiko tukaran mata wang perlu dipantau.
• Tunai & Setara Tunai: RM2.41 bilion, turun dari RM3.65 bilion tahun ke tahun.
• Komitmen Modal: RM842.6 juta pada 31 Mac 2026 (peningkatan berbanding Disember 2025).

Kemas Kini Strategik & Korporat

• Penyatuan Pasaran: Konsolidasi utama di Indonesia, Sri Lanka & Malaysia telah siap.
• Portfolio Teknologi: ADA dan Boost kini untung, sasaran pembiayaan luar dan pertumbuhan nilai.
• Terbitan Saham: 1.89 juta saham baharu melalui pelan pampasan jangka panjang.
• Pembayaran Sukuk: Telah dilunaskan sepenuhnya, keuntungan tukaran wang (lebih RM93 juta) menyumbang kepada keuntungan suku ini.
• Dividen: 5.0 sen sesaham, telah dibayar selepas suku berakhir.

Litigasi & Peraturan

• Tuntutan Material: Beberapa pertikaian cukai utama di Bangladesh (Robi), jumlah besar tetapi pengurusan yakin telah diuruskan atau diberi peruntukan secukupnya. Tiada impak tunai segera dijangka, tetapi pelabur harus memantau perkembangan.

Prospek & Panduan

• Panduan 2026: Pengurusan yakin pertumbuhan keuntungan dan nilai akan diteruskan. Fokus pada operasi cekap, pengurusan risiko, dan pelaburan modal yang berdisiplin.
• Risiko: Volatiliti FX, ketidaktentuan ekonomi global, dan tindakan pengawal selia kekal sebagai risiko utama.
• Peluang: Konsolidasi pasaran dan portfolio teknologi dijangka menjadi pendorong utama nilai pemegang saham.

Maklumat Sensitif Harga / Berpotensi Menggerakkan Saham

• PAT dan PATAMI melonjak >100% tahun ke tahun.
• Portfolio teknologi (ADA & Boost) kini untung.
• Pembayaran dividen 5.0 sen sesaham selepas tempoh pelaporan.
• Pembayaran penuh Sukuk dan keuntungan tukaran wang yang besar.
• Tuntutan undang-undang material masih berjalan; sebarang perkembangan negatif boleh beri impak masa depan.

Ringkasnya, keputusan Q1 2026 sangat kukuh, dengan pertumbuhan keuntungan ketara, pengurusan kos yang baik, dan pulangan kepada pemegang saham. Namun, risiko tukaran mata wang dan tuntutan undang-undang besar perlu dipantau rapi oleh pelabur.

Penafian: Artikel ini hanya untuk makluman dan bukan nasihat pelaburan. Sila lakukan penilaian sendiri atau rujuk penasihat profesional sebelum membuat keputusan pelaburan. Penulis tidak bertanggungjawab atas sebarang kerugian secara langsung atau tidak langsung akibat penggunaan maklumat ini.

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