TELECOMMUNICATIONS, TECHNOLOGY BUSINESSES TO BOOST SHAREHOLDER RETURNS -- AXIATA

KUALA LUMPUR, Feb 26 (Bernama) -- Axiata Group Bhd expects merger synergies, 5G market leadership, and monetisation of infrastructure assets to drive earnings growth and support its target of delivering at least 10 per cent annual dividend growth going forward.

Group chief executive officer (GCEO) and managing director (MD) Vivek Sood said improving telecommunications market conditions across its footprint provides opportunities for a stronger operational and financial performance. “I think opportunities are around merger synergies and market repair in the telecommunications portfolio,” he said at the 2025 financial year results online media briefing.

Sood said Axiata’s leadership in 5G deployment across several regional markets is expected to support long-term revenue growth and enhance its competitive position. “We are leading a 5G rollout in Indonesia, Sri Lanka, and Cambodia. We should be able to monetise the 5G leadership in these markets,” he added.

In addition, Axiata is progressing with monetisation initiatives involving its infrastructure assets, which are aimed at unlocking value, strengthening its balance sheet, and reducing holding company debt.

The group expects dividend contributions of RM1.7 billion from its operating companies this year, reflecting improved operational performance and stronger cash flow generation across its portfolio.

“What we are doing now is focused on telecommunications and technology. Telecommunications is going to be driving profit and valuation growth. Technology essentially would be the valuation and, at the appropriate time, monetisation of these assets,” he continued.

Sood added that the group aims to strengthen its financial position by reducing its net debt-to-earnings before interest, tax, depreciation, and amortisation (EBITDA) ratio to below 2.0 times from 2.46 times currently, while targeting high single-digit annualised returns for shareholders.

However, he noted that challenges remain, mainly in relation to the transition to Malaysia’s dual wholesale network model and uncertainties surrounding the monetisation of 5G investments.

“I think we are progressing in the right direction on the transition from a single wholesale to a dual wholesale network in Malaysia,” he said. “Monetisation of 5G, I think, is a risk because the success factors have always been very limited, very few markets.”

He also noted that geopolitical and macroeconomic uncertainties remain key risk factors given Axiata’s extensive regional presence. “Given the footprint we have, we are always susceptible to the geopolitical macro risks. We are watchful of that, and it's one of the highly important items in the risk management process within the group,” he added.

Meanwhile, Nik Rizal Kamil, the group chief financial officer who will assume the role of GCEO and MD effective June 1, said the group would maintain strategic continuity and remain focused on executing its existing plans under the ‘Axiata28: Advancing Asia’ strategy. “For 2026, there will be no major movements. We are very clear in terms of our strategy. As far as I'm concerned, there won't be any wholesale changes to the strategic imperatives or objectives going forward,” he added.

-- BERNAMA