Malaysia-headquartered telecommunications group Axiata Group Berhad said its underlying profit after tax and minority interests more than doubled to RM717.2 million ($171 million) in the first half of 2026, supported by stronger operating performance and merger synergies across its regional portfolio.
On a constant-currency basis, revenue rose 7.3 percent, earnings before interest, taxes, depreciation and amortization (EBITDA) increased 14.1 percent, and earnings before interest and taxes climbed 80.9 percent from a year earlier, according to Axiata’s quarterly results materials.
Reported revenue fell 3.2 percent to RM5.7 billion, however, as a stronger ringgit reduced the value of earnings translated from Axiata’s operating markets. The company presented the constant-currency figures to separate that translation effect from underlying business performance.
Cash flow supports higher dividend
Axiata reported operating free cash flow of RM678.3 million and a cash balance of RM3.7 billion at the end of June. Its net debt-to-EBITDA ratio stood at 2.63 times.
The group said it received RM875.3 million in dividends from operating companies during the six-month period. Its board declared an interim dividend of 5.5 sen per share, 10 percent higher than the comparable payout a year earlier.
The first-half figures extend the improvement reported in the first quarter, when Axiata said underlying profit more than doubled to RM438.3 million and operating free cash flow rose 19.9 percent. Axiata attributed that earlier performance to stronger operations, foreign-exchange gains, lower finance costs and merger-related savings, according to its May results announcement.
Regional operators drive earnings
CelcomDigi, Axiata’s jointly controlled Malaysian mobile operator, recorded first-half revenue of RM6.4 billion and RM141 million in merger-related efficiency savings, Axiata said. The group did not consolidate CelcomDigi’s revenue into its own reported revenue because the operator is accounted for as a joint venture.
In Indonesia, XLSMART reported year-on-year revenue growth of 25.8 percent and EBITDA growth of 24.6 percent. Its EBITDA margin reached 45.7 percent, while underlying profit after tax was IDR2.7 trillion. The figures cover a period shaped by the integration of XL Axiata and Smartfren, whose merger created XLSMART in 2025.
Axiata and Sinar Mas each became joint controlling shareholders of XLSMART following the transaction. The companies had projected annual run-rate pre-tax synergies of $300 million to $400 million after integration, as TNGlobal reported when shareholders approved the merger.
The group’s frontier-market operators also reported improved earnings. Axiata said EBITDA at Bangladesh’s Robi rose 15.6 percent and profit attributable to shareholders increased 29.3 percent. Sri Lanka’s Dialog recorded 22.9 percent EBITDA growth and more than doubled its profit, while Cambodia’s Smart generated profit attributable to Axiata of $65.1 million.
Telecommunications infrastructure unit EDOTCO increased its tenancy count by 3.7 percent. Axiata did not provide a consolidated first-half tenancy total in the release.
Digital businesses show mixed profitability
Digital marketing and analytics unit ADA increased revenue by 15.9 percent, supported in part by its acquisition of retail technology company Algonomy. EBITDA fell 20.9 percent, indicating that the revenue growth did not translate into higher operating earnings during the period.
Fintech arm Boost grew revenue by 67.3 percent. The result included RM51 million in one-off software and services income, making the headline growth rate less representative of recurring operations. Boost’s loan book stood at RM418 million at the end of the period.
Axiata said its operating companies are progressing with integration, cost discipline and portfolio execution under its Axiata28 strategy. Currency movements remain an important factor for reported group results because much of its revenue is generated outside Malaysia.
Axiata and Sinar Mas secure shareholders approval for XLSMART merger