PETALING JAYA: Axiata Group Bhd saw underlying profit more than double in the first six months of 2026, a surge the telecom conglomerate credits to swift execution of its Axiata28 strategy.
The result lands amid a broader regional push toward consolidation and network upgrades. CelcomDigi and XLSMART, two of Axiata’s largest operating units, continue extracting merger synergies while competitors race to expand 5G coverage. For investors, the numbers suggest that cost discipline, not just revenue growth, now drives profitability.
Second quarter revenue reached RM2.87bil. Reported net profit, however, dropped to RM42.5mil from RM270.8mil a year earlier. Earnings per share fell to 0.50 sen from 2.90 sen.
Despite foreign exchange pressure, underlying profit after tax and minority interests hit RM717.2mil for the half. That performance rode on RM5.7bil in reported revenue and a 60.7% jump in EBIT.
On a constant currency basis, revenue climbed 7.3% and EBIT surged 80.9%. Post-merger efficiencies, network modernisation and tighter cost management produced those gains.
Operational momentum held across the group’s core telecom businesses. CelcomDigi posted steady convergence growth. XLSMART moved ahead of schedule on merger integration. Robi, Dialog and Smart all added subscribers while rolling out 5G services.
Meanwhile, Linknet showed early signs of a turnaround. EDOTCO maintained underlying stability. Digital businesses also expanded, with Axiata Digital Advertising recording double-digit revenue growth and Boost growing its loan book further.
Cash and balance sheet strength rounded out the picture. Axiata closed the period with RM3.7bil in cash, lower holding company debt, and net debt to EBITDA at 2.63x. Dividend inflows from operating units totalled RM875.3mil.
That cash flow visibility led the board to declare a first interim dividend of 5.5 sen per share.
Chairman Tan Sri Shahril Ridza Ridzuan said the results validate the group’s strategic direction and its capacity for sustainable returns. Group CEO Nik Rizal Kamil added that the Smart Asset Manager model is converting consolidation and cost discipline into higher earnings, setting up long-term value creation.
