KUALA LUMPUR: Axiata Group Bhd’s net profit declined to RM42.52 million in the second quarter ended June 30, 2026 (Q2’26), from RM270.81 million a year earlier.
Revenue declined 3.2% to RM2.87 billion from RM2.96 billion, mainly due to currency translation effects, despite 6% growth at constant currency.
“At constant currency, Axiata’s revenue increased by 6%, contributed by all operating companies except for Edotco Group and Linknet,” it said in a filing with Bursa Malaysia.
For the first half ended June 30, 2026 (H1’26), Axiata’s net profit fell to RM316.32 million from RM430.65 million a year earlier, while revenue declined to RM5.67 billion from RM5.85 billion.
Axiata received RM875.3 million in dividends from its operating companies in H1’26 and declared a first interim dividend of 5.5 sen per ordinary share, up 10% year-on-year.
Group CEO and managing director Nik Rizal Kamil said Axiata remained committed to increasing dividends by at least 10% annually until 2028, with a target of returning a cumulative RM3 billion to shareholders over the period.
He said the H1’26 performance demonstrated the strength of Axiata’s telecommunications and technology portfolios, as well as progress under its Axiata28: Advancing Asia strategy.
The strategy focuses on unlocking the full value of the group’s assets and driving sustainable shareholder returns through a “smart asset manager” model, he said during a virtual press conference.
“This approach combines private equity-like discipline in how we own, grow and allocate capital with the patience of a long-term strategic owner to build sustainable value and deliver outsized returns to our shareholders,” he said.
Nik Rizal said the group was accelerating its transformation by segmenting its portfolio into telecommunications and technology businesses, which are expected to drive growth and valuation over the next two-and-a-half years.
On operations, the telecommunications segment recorded stronger earnings momentum, supported by improved market structures, merger synergies and operational discipline.
Underlying profit contributions from the telecommunications and infrastructure portfolio grew more than 60% in 1H, driven by strong performances from XL Smart in Indonesia, Dialog in Sri Lanka and Robi in Bangladesh.
The group also continued to invest in network leadership, including 5G rollouts and modernisation initiatives across key markets such as Sri Lanka, Bangladesh, Indonesia and Cambodia.
Meanwhile, the technology segment expanded its capabilities, with ADA, Axiata’s data and artificial intelligence-driven digital solutions business, posting double-digit revenue growth and broadening its footprint following the acquisition of Algonomy, which strengthened its AI capabilities.
Boost, its digital financial services arm, recorded a 150% year-on-year increase in its loan book to RM418 million and secured the International Finance Corporation (IFC) as a strategic investor at a valuation of US$340 million (RM1.36 billion).
Nik Rizal said the higher finance costs recorded by the Boost segment were in line with its strong growth trajectory, particularly Boost Bank’s expansion.
“The cost is in tandem with revenue growth, especially on a year-on-year basis where growth has been substantial, as the digital bank progresses towards becoming a full-fledged player,” he said.
He added that IFC had invested RM81.7 million in Boost Holdings, while Axiata continued to explore additional investors to support its future expansion and extend its growth runway.
