Kuala lumpur: Axiata Group Bhd's net profit surged to RM273.80 million in the first quarter ended March 31, 2026, from RM159.84 million in the same quarter last year.
According to BERNAMA News Agency, the boost in net profit was attributed to higher earnings before interest, taxes, depreciation and amortisation (EBITDA), foreign exchange gains, and reduced finance costs. However, the increase in earnings was partially countered by elevated taxes and a diminished share of profits from associates, impacted by losses incurred by XLSMART.
Revenue for the quarter saw a decline to RM2.80 billion from RM2.89 billion the previous year, primarily due to the adverse impact of foreign currency translation owing to the depreciation of the operating companies' (OpCos) currencies against the ringgit. Despite this, at constant currency, group revenue increased by 8.5 percent, driven by all OpCos except for Linknet. Group EBITDA and earnings before interest and taxes (EBIT) rose by 11.2 percent and 48.4 percent to RM1.36 billion and RM583.4 million, respectively. At constant currency, these figures jumped by 25.9 percent and 67.9 percent, respectively, mainly due to revenue growth.
The report noted that Robi's revenue fell to RM820.5 million, Dialog's to RM604.8 million, Smart's to RM441.5 million, EDOTCO's to RM545.6 million, and Linknet's to RM155.4 million. Conversely, ADA's revenue increased to RM250.0 million, and Boost's revenue grew to RM106.4 million. Furthermore, following the merger between PT XL Axiata Tbk (now PT XLSMART Telecom Sejahtera Tbk) and PT Smartfren Telecom Tbk on April 16, 2025, and the disposal of EDOTCO Investments Singapore Pte Ltd on June 13, 2025, the group's financial results for XLSMART are included under continuing operations from April 16, 2025, onwards, while EIS and XL's results before these dates are shown as discontinued operations.
Axiata highlighted that ongoing geopolitical tensions in West Asia are contributing to global economic uncertainty, affecting energy prices, forex fluctuations, and financial conditions. The group is managing these challenges through prudent liquidity and risk management while assessing impacts on operations and financial performance. Despite these challenges, Axiata remains on track to achieve profitability and valuation growth for the financial year ending December 31, 2026.
As part of its Axiata28: Advancing Asia strategy, the group is focusing on disciplined capital allocation, consistent execution, and maintaining returns across a focused portfolio. Axiata chairman Tan Sri Shahril Ridza Ridzuan emphasized the importance of financial strength, governance discipline, and long-term value creation for shareholders.
Group CEO and managing director Vivek Sood reported progress in the 5G rollout across all markets, positioning OpCos for future growth, with Robi in Bangladesh at an earlier stage. The group is optimizing its portfolio to enhance performance and unlock value, strengthening cash generation from telecom assets, and scaling technology businesses to support long-term shareholder returns.