Kuala lumpur: Axiata Group Bhd reported a decline in net profit to RM42.52 million for the second quarter ending June 30, 2026, compared to RM270.81 million in the same period last year. Revenue also fell by 3.2% to RM2.87 billion from RM2.96 billion, primarily due to currency translation effects, despite achieving a 6.0% growth at constant currency.
According to BERNAMA News Agency, Axiata's revenue increased by 6.0% at constant currency, driven by all operating companies except Edotco Group and Linknet. For the first half of 2026, net profit decreased to RM316.32 million from RM430.65 million the previous year, with revenue reducing to RM5.67 billion from RM5.85 billion. The company received RM875.3 million in dividends from its operating companies in the first half and declared a first interim dividend of 5.5 sen per ordinary share, marking a 10% year-on-year increase.
Group CEO and Managing Director Nik Rizal Kamil emphasized Axiata's commitment to increasing dividends by at least 10% annually until 2028, aiming to return a cumulative RM3 billion to shareholders over the period. He noted that the first half of 2026 performance highlighted the strength of Axiata's telecommunications and technology portfolios and progress under its Axiata28: Advancing Asia strategy. This strategy aims to unlock the full value of the group's assets and drive sustainable shareholder returns through a 'smart asset manager' model.
The telecommunications segment showed strong earnings momentum, supported by market improvements, merger synergies, and operational discipline. Underlying profit contributions from telecommunications and infrastructure grew over 60% in the first half, with significant performances from XL Smart in Indonesia, Dialog in Sri Lanka, and Robi in Bangladesh. The group continued investments in network leadership, including 5G rollouts in key markets.
In the technology segment, ADA, Axiata's AI-driven digital solutions business, expanded its capabilities, posting double-digit revenue growth and broadening its reach with the acquisition of Algonomy. Boost, Axiata's digital financial services arm, saw a 150% year-on-year increase in its loan book to RM418 million and secured investment from the International Finance Corporation (IFC) at a valuation of US$340 million.
Nik Rizal highlighted that the higher finance costs in the Boost segment aligned with its growth trajectory, particularly as Boost Bank expands. IFC invested RM81.7 million in Boost Holdings, and Axiata is exploring additional investors to support future expansion and growth.