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  • Axiata Achieves MYR 431 Million Profit Amid Strategic Realignment and Focused Execution

    Axiata Achieves MYR 431 Million Profit Amid Strategic Realignment and Focused Execution

    Axiata Group Berhad has unveiled a remarkable profit after tax and minority interest (PATAMI) of MYR 430.7 million for the first half of 2025, more than doubling from last year. This impressive growth showcases the company’s disciplined approach to cost management, bolstered cash flow, and significant debt reductions, alongside gains from its ambitious 5*5 strategy.

    Dividends and Financial Highlights

    The board has announced a first interim dividend of 5.0 sen per ordinary share, reflecting Axiata’s dedication to shareholder returns. Operating free cash flow (FCF), after leases, surged over 90% year-on-year to MYR 868.7 million, with the company’s cash reserves standing at a healthy MYR 4.9 billion. While revenue experienced a slight decline of 0.9% year-on-year on a constant currency basis, earnings before interest, taxes, depreciation, and amortization (EBITDA) grew by 2.3%. The underlying PATAMI rose by 39% to MYR 203.7 million, driven by stronger earnings before interest and taxes (EBIT) and reduced finance costs.

    Leadership Insights on Strategy and Growth

    Chairman Tan Sri Shahril Ridza Ridzuan attributed the robust performance to Axiata’s strategic clarity and disciplined execution, expressing optimism about progress in key markets and asset portfolios. He noted that the MYR 1 billion in dividends received year-to-date reflects the company’s strong financial footing and commitment to rewarding shareholders.

    Group CEO and Managing Director Vivek Sood also emphasized the positive outcomes of the company’s realignment strategies, stating, “Axiata’s performance reflects the strength of our strategic realignment and disciplined execution, with a focus on operational excellence and a fortified balance sheet.” He underscored the significance of the XLSMART merger and the exit from Myanmar as crucial elements of the 5*5 strategy, aimed at minimizing structural risks and enhancing financial flexibility.

    Future Outlook: Focusing on Earnings and Dividends

    As Axiata looks ahead, Sood highlighted that improvements in cash flow and shareholder yield will be prioritized in the latter half of 2025. “Our key priorities will include driving operational performance and executing strategic portfolio adjustments to ensure optimal capital allocation,” he affirmed, emphasizing the goal of enhancing dividend yields.

    Questions & Answers

    What were Axiata’s PATAMI figures for the first half of 2025?
    Axiata reported a profit after tax and minority interest (PATAMI) of MYR 430.7 million, which more than doubled compared to the previous year.

    How has Axiata’s financial performance affected its dividends?
    The board declared a first interim dividend of 5.0 sen per ordinary share, showcasing the company’s ongoing commitment to delivering shareholder returns as part of its strong financial performance.

    What strategies has Axiata implemented for future growth?
    Axiata’s future growth strategies include prioritizing cash flow improvement, executing necessary portfolio moves, and enhancing operational performance to optimize capital allocation and boost dividend yields.

  • Axiata Teams Up With Versa Networks To Deliver SASE Technology To Enterprises

    Axiata Teams Up With Versa Networks To Deliver SASE Technology To Enterprises

    Axiata Group Berhad announced it was teaming up with Versa Networks to provide Secure Access Service Edge (SASE) technology for rapidly digitalizing Asian enterprises.

    Under this agreement, Axiata Enterprise – the Group’s B2B unit – will collaborate with Axiata’s operating companies, Celcom in Malaysia and XL Axiata in Indonesia, to launch a wide variety of Versa SASE solutions covering Networking, Security and Cloud Access integration for enterprise customers in these markets.

    This latest partnership complements the expansion of Axiata’s existing enterprise offerings in areas of Managed Connectivity, Smart Services, Cloud and Cyber Security.

    In a statement, Axiata Enterprise’s CEO, Gopi Kurup, said, “Enterprises embarking on their digital transformation want to become more flexible, efficient and location-independent, as they embrace to new ways of working. With increasing connectivity, integration and security are critical to ensure uninterrupted business access. The Versa SASE innovation integrates security, networking, SD-WAN      and analytics to deliver scalable, secure and reliable enterprise-wide networking and security. This is done via adoption of a cloud-type gateway which can efficiently distribute and seamlessly offload between the private office network and the Internet to access other cloud services.”

    Versa SASE delivers tightly integrated services via the cloud, on-premises or a blended combination of both. This solution will be complementary to Managed Connectivity solutions offered by Celcom in Malaysia and XL Axiata in Indonesia.

    “This partnership with Versa Networks further cements Axiata Enterprise’s proposition to empower organisations across the region seeking to raise their digitalisation game. Our combined strengths in technology, capabilities and reach across emerging Asia markets positions us as the right transformation partner to Enterprises that are looking to adopt cloud-based applications and data to accelerate in the post-pandemic recovery phase,” Gopi said.

    Versa Networks’ vice president meanwhile also lauds this partnership.

    “Axiata, one of the leading telecommunications groups in Asia, continuously provides world-class communication services based on the most advanced technology available,” noted Tony Fallows, vice president, Versa Networks. “Versa is excited to be working with Axiata to expand Versa SASE further into the ASEAN and South Asia markets. Axiata, Celcom and XL Axiata will soon be able to deliver Versa’s industry-leading fully integrated and feature-complete SASE to support digitalisation in the regional markets.”

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  • Malaysia confirms utilizing SWN model for 5G implementation

    Malaysia confirms utilizing SWN model for 5G implementation

    The Malaysian government is sticking to its plan of deploying 5G through a single wholesale network (SWN). In a joint statement from the ministries of finance and communications and multimedia, up to 70% equity in the wholly state-owned 5G company, Digital Nasional Berhad (DNB), will be available to telcos.

    Malaysian finance minister Tengku Zafrul Aziz emphasized that the maintenance of the SWN model is the government’s firm stance on policy continuity. “The implementation of 5G will drive the country’s socio-economic transformation and this is estimated to contribute RM 659 billion to the value of GDP until 2030,” Aziz explained.

    The finalized decision has come in contrast to the concerns among wireless carriers that a single, shared 5G network could hamper digital competitiveness. Nonetheless, the government will retain a 30% equity stake in DNB while the majority of the stakes are intended for operators. It is worthy to note that this special-purpose vehicle company was established in early March 2021 to drive 5G infrastructure development in Malaysia.

    Accessing DNB’s 5G network is estimated to cost less than what major local telecom operators such as Celcom Axiata, Digi, Maxis, and U Mobile have incurred during 4G rollouts. In line with this, DNB has offered free 5G services to service providers until March 31 as part of its commercial trial. Aiming to achieve 80% coverage of populated areas by 2024, the trial is bound to be extended until June 30 to allow more operators to sign up.

    Access to high-quality 5G services would accelerate the recovery of the post-pandemic Malaysian economy. Moreover, “the SWN model will help bridge the urban-rural digital divide to enable all Malaysians to enjoy high-quality 5G services and be widely available to them through telecommunications companies,” said Malaysian communications and multimedia minister Annuar Musa.

    In retrospect, the Malaysian government refused the prior recommendation of having a dual wholesale network (DWN) model and selected Ericsson to develop the country’s 5G network infrastructure.

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  • Axiata expands network leadership with commercial Open RAN across Asia

    Axiata expands network leadership with commercial Open RAN across Asia

    Axiata Group Berhad (“Axiata” or “the Group”) has embarked on an ambitious network transformation program, leveraging Open Radio Access Networks (Open RAN) as a key technology for mobile networks designed to narrow the digital divide and enhance rural connectivity across Asia.

    Eyeing large-scale commercial deployments by year-end, the Group has successfully conducted Open RAN commercial field pilots in Malaysia, Indonesia, and Sri Lanka through strategic partnerships with leading global network solutions providers Mavenir and Parallel Wireless and supported by Infosys as systems integrator (SI).

    Through its strategic partnership with Mavenir, the industry’s end-to-end network software provider, Axiata has deployed the MAWair Open vRAN solution including all G Open RAN, Packet Core and Mobile Network applications at selected sites, in Malaysia, Indonesia and Sri Lanka. To simulate non-ideal backhaul conditions, especially for rural areas, the sites selected are connected with non-ideal backhaul (microwave links), and in some cases satellite, making this the first satellite backhaul powered Open vRAN sites in the world.

    During the testing phase, Axiata was also able to achieve the first live commercial service integration of the Telecom Infra Project (TIP)’s Evenstar 4G Radio through Mavenir’s MAVair O-RAN based solution for Open RAN. Axiata is a participant of the TIP initiative in which a global community of companies and organizations are working together to accelerate the development and deployment of open, disaggregated, and standards-based technology solutions that deliver high quality, low-cost connectivity.

    Axiata’s commercial pilot also encompassed a collaboration with Parallel Wireless, the US-based Open RAN company delivering all G, cloud-native Open RAN solutions. Axiata successfully demonstrated commercial deployment of 2G and 4G Open RAN connectivity within its network in Sri Lanka which is operated by Dialog Axiata.

    Parallel Wireless’s solutions enabled 2G and 4G technology to be installed on the same radio units, with baseband deployed on a x86 commercial-off-the-shelf (COTS) platform, and all other applications deployed on Axiata’s OpenStack cloud infrastructure. The field trials now elevated to commercial availability, included 3-Sector, 4-Sector and 6-Sector sites, and demonstrated high-quality network performance.

    End user experience was demonstrated to be seamless and, in some cases, superior in terms of mobile broadband experience including next generation voice services. Commercial deployment encompassed rural, sub-urban and urban environments.

    The paradigm shift in telco networks towards Open RAN requires system integration capabilities to bring together the ecosystem of disaggregated components using standardized open interfaces on general-purpose hardware and ensuring interoperability in a carrier grade environment. Axiata was supported by Infosys in executing multi-faceted system integrations required to demonstrate the comprehensive coverage of Open RAN configuration options.

    Thomas Hundt, Axiata’s Group Executive Vice President – Technology said, “Open RAN is the future for mobile networks, and it will be critical for 4G expansions as well as the 5G evolution that Axiata’s markets will soon embrace. Aligning with our vision to become The Next Generation Digital Champion, the benefits from open networks will enable Axiata to better serve rising connectivity needs across the region, especially in rural and underserved areas, whilst ensuring sustainable value creation for our stakeholders.”

    “Together with our partners Mavenir, Parallel Networks and Infosys, and in line with the global connectivity push under the Telecom Infrastructure Project, Axiata is committed towards embracing fully automated infrastructure to boost the open network’s ecosystem in Asia. Our successful trials in Malaysia, Sri Lanka and Indonesia prove that Open RAN solutions enable greater operational and cost efficiencies using advanced technologies, whilst also meeting the needs of our digital inclusion efforts across the region. We look forward to taking the next step towards commercialization in our pursuit of catalyzing game-changing advancements across emerging Asia,” he said.

    Pardeep Kohli, Mavenir President and CEO said, “Mavenir is delighted to work with Axiata on their radio network transformation initiative and to achieve excellent results in the live everyday environment, proving the extreme flexibility of Open vRAN. The collaboration will transform existing networks into a dynamic, agile and cloud-native based platform where Mavenir and Axiata will build the Networks of the Future.”

    Keith Johnson, President of Parallel Wireless said, “We are honored to partner with Axiata, replacing their incumbent vendors equipment with our leading-edge Open RAN Solution to enable 2G and 4G broadband services in Sri Lanka and other Axiata subsidiaries. We are thrilled that the trials are successful, and we look forward to the commercial deployments in 2021.”

    Anand Swaminathan, EVP & Global Industry Leader, Communications, Media & Technology Infosys said, “Open RAN is transforming the wireless architecture and is enabling Telecom operators to be more competitive and innovative, while providing them flexibility in RAN component suppliers’ ecosystem. The successful completion of the field trial on live network was a major milestone for accelerating the scaled deployment of virtual and Open RAN networks. Infosys is excited to be the SI partner to Axiata in this transformational journey and is committed to stand together to achieve many more milestones in the near future.”

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  • Axiata’s Q3 EBITDA jumps 29% on 3.5% revenue growth

    Axiata’s Q3 EBITDA jumps 29% on 3.5% revenue growth

    Axiata Group posted revenue of MYR 6.2 billion for the third quarter of 2019 (3Q19), which represents an increase of 3.5 percent year-on-year. EBITDA jumped 29 percent to MYR 2.8 billion, boosted by revenue growth as well as the group’s cost reduction initiatives which resulted in MYR 816 million in savings. Profit after tax jumped 33.5 percent to MYR 247.6 million for the quarter as a result of better topline, the company said. However, profit after tax and minority interest (PATAMI) fell 9.4 percent to MYR 119.7 million due to the absence of M1’s contribution following its disposal, as well as higher taxes in Bangladesh.

    Amid a highly competitive market in Malaysia, Celcom’s free cash flow rose 15.3 percent to MYR 674 million year-to-date, supported by EBITDA growth of 3.9 percent. PATAMI rose 7.9 percent to MYR 562 million. Celcom’s combined postpaid and prepaid revenue rose 0.6 percent, while mobile service revenue dropped 4.1 percent impacted by the decline in wholesale revenue. Blended ARPU improved by MYR 1 compared to the preceding quarter to MYR 52 in the third quarter of 2019. Celcom’s 4G population coverage rose to 93 percent, and its 4G LTE-A coverage reached 81 percent compared to 90 percent and 78 percent, respectively, in September 2018.

    Parent company Axiata also reported that its Indonesian unit XL’s turnaround in the period was led by its data-focused strategy continuing to deliver results as market share rose 0.6 percentage points to 18.3 percent, returning to profit with PATAMI at IDR 498 billion. Revenue grew 10.6 percent year-to-date driven by strong data growth of 30.4 percent. XL’s free cash flow surged 50.9 percent to IDR 1.8 trillion, on the back of cost efficiencies fueling 19.4 percent jump in EBITDA. XL says it captured 88 percent of 55.5 million total subscribers from 53.9 million in the third quarter of 2018. In support of its data strategy, XL’s 4G service is now available in 410 cities across Indonesia.

    Sri Lanka unit Dialog saw its revenue expand 8.1 percent year-to-date due to continued growth momentum across its TV (+16.6%), fixed (+8.7%) and mobile (+0.4%) businesses. Free cash flow grew 39.5 percent to SLR 19.2 billion buoyed by higher EBITDA and calibrated network rollout. Its PATAMI rose by 12.5 percent to SLR 8.3 billion YTD.

    Philippines subsidiary Smart delivered double-digit growth across all metrics with revenue, EBITDA and PATAMI up by 11.4 percent, 14.5 percent, and 14.3 percent, respectively, and FCF by over 200 percent.

    Despite new Bangladesh taxes, Robi returned to profit with PATAMI at BDT 1.6 billion. Revenue reaches BDT 19 billion in the three months ended 30 September 2019, as ARPU rose to BDT 125.

    With international long-distance revenue dropping 10.5 percent year-to-date, Ncell’s core mobile revenue declined 3.5 percent as a result of intense competition by internet service providers and Business Support System migration. Although PATAMI slipped 3.6 percent, PATAMI margin remained stable at 31 percent. Free cash flow fell 42.8 percent due to calibrated network rollout.

    In this year’s third quarter, edotco posted double-digit growth across all financial metrics. Revenue grew by 19 percent year-to-date, with positive contributions across its major footprints. The tower company recorded adjusted EBITDA growth of 26.7 percent, with 3.2 percentage points improvement in (adjusted) EBITDA margin driven by enhanced billing against lower maintenance costs in 2019. The improvement in EBITDA led to a 4-fold increase in free cash flow year-to-date, as well as growth in PATAMI of 10.4 percent year-to-date.

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  • Axiata eyeing new partnerships just two weeks after Telenor deal ends

    Axiata eyeing new partnerships just two weeks after Telenor deal ends

    Two weeks after the abrupt cancellation of the mega-merger proposal between Axiata Group Bhd and Telenor, President and CEO of Axiata Group Jamaludin Ibrahim has made it clear that the company would begin focusing on forming partnerships with competitor markets, namely those within Indonesia and Malaysia, in the next three to five years.

    Axiata is one of Asia’s leading telecommunications conglomerates and Malaysia’s largest wireless carrier, serving over 300 million customers from India to Cambodia, so it’s no surprise that the company is still looking to pursue other mergers as a major operating strategy.

    “Consolidation is key to future-proof us in the medium term given the challenges in the industry,” Jamaludin said. “The cancellation of the merger does not deter us from looking at other possibilities.”

    Although he did not reveal who these potential partners may be, it was reported that Axiata and CK Hutchison had already organised informal discussions about a joint venture for their businesses in Indonesia.

    Earlier in the month, Axiata had abandoned talks with Telenor to merge their Asian operations and create an entity that could have seen them generate over $13 billion in sales alone, due to complexities related to the deal.

    The company is currently refocusing its business target and operational efficiency. “We believe that profit and cash aren’t good enough because the industry is slowing down,” Jamaludin said.

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  • Axiata Group negotiating mega merger with Telenor

    Axiata Group negotiating mega merger with Telenor

    Malaysia-based Axiata Group has revealed it is in discussion to merge with Telenor’s Asian operations to create a regional powerhouse with total annual revenues of over 50 billion ringgit ($12.05 billion).

    Under the preliminary terms of the proposed merger of equals, Telenor would own a 56.5% stake in the merged company, while Axiata would take a 43.5% stake.

    The combined company would be one of the largest operator groups in Asia-Pacific, with operating subsidiaries in nine countries with a total of 300 million customers and a market reach of over 1 billion people.

    In Axiata’s home market, the merger would involve combining Malaysia’s Celcom Axiata with Telenor’s subsidiary in the nation Digi.Com to create the largest mobile operator in the market.

    Axiata’s subsidiary in Bangladesh Robi Axiata would continue to be managed independently by Axiata.

    The merger is expected to deliver around 20 billion ringgit in synergies through the consolidation of assets as well as the benefits of economies of scale.

    In addition to the retail operations, the merger has the potential to create a top five mobile infrastructure player through the combination of Axiata’s tower company edotco with Telenor’s Asian tower assets.

    In a filing with the Malaysian stock exchange, Axiata Group said discussions are still ongoing and there is no guarantee a deal will eventuate, but that it has opted for early disclosure to provide transparency for shareholders during the negotiations.

    “This proposed mega-merger of equals would create a Global Champion, headquartered right here in Malaysia…Leveraging on the synergies of our combined assets, organizations, talents, best practices, scale and financial firepower, we would create the largest telecom operator in the region,” Axiata president and group CEO Tan Sri Jamaludin Ibrahim said.

    “There is a lot of work ahead of us to conclude this deal, but I am excited as this merger would be unparalleled in the history of telecom in Asia and corporate Malaysia.”

    Subject to due diligence, the two companies aim to have negotiated the terms of a binding agreement by the end of the third quarter.

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  • XL Axiata upgrading fiber network for 5G era

    XL Axiata upgrading fiber network for 5G era

    Indonesia’s XL Axiata has engaged Infinera to modernize both its South Sumatra terrestrial network and its Singapore-to-Jakarta subsea network for the 5G era.

    Under the agreement, Infinera will provide its XTC platform for the South Sumatra terrestrial network and the  Jakarta-Bangka-Batam-Singapore (B2JS) cable.

    The XTC platform is powered by Infinera’s Infinite Capacity Engine solution, which is designed to provide scalable multi-terabit optical super-channel capacity for distances from metro to subsea.

    XL Axiata CTO Yessie Dianty Yosetya said this additional capacity will allow XL Axiata to prepare its network for the arrival of 5G in Indonesia.

    “As one of Southeast Asia’s largest economies, modernizing the network in Indonesia to ensure 5G-readiness is a priority,” she said.

    “Our partnership with Infinera and Lintas Teknologi has been critical to help us achieve this milestone. Further, the performance of Infinera’s ICE4 solution for this subsea and terrestrial network upgrade enables the delivery of cloud-scale capacity that is simple and operationally efficient, with the benefit of intelligent OTN switching that accelerates our ability to deliver services faster.”

    XL Axiata’s transport infrastructure spans over 45,000km of fiber, while its mobile services cover 94% of Indonesia’s population. The company is a subsidiary of Malaysia-based Axiata Group.

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  • Mobitel to invest $50m in 5G this year

    Mobitel to invest $50m in 5G this year

    Sri Lankan national mobile service provider Mobitel has revealed plans to invest $50 million this year to deploy a 5G network and upgrade its network infrastructure.

    The operator, a wholly-owned subsidiary of Sri Lanka Telecom, has commenced 5G trials ahead of a planned rollout.

    While Sri Lanka was the first country in South Asia to introduce 3G and 3.5G technology, Mobitel does not expect it to be the first to introduce 5G, the report states.

    Meanwhile Mobitel has been investing heavily to upgrade its 3G network to 4G, having spent around $100 million to convert around 100 3G base stations. The operator plans to continue the 4G upgrade, with plans to soon switch off its 3G network.

    Mobitel has now invested around $600 million over its 25 year history. But despite heavy investments and foreign exchange losses, the company managed to increase its revenue by around 10% last year.

    Mobitel is the second largest mobile operator in Sri Lanka after Dialog Axiata, with around 22.6% market share.

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  • Dialog Axiata announces 5G pilot service

    Dialog Axiata announces 5G pilot service

    Sri Lanka’s Dialog Axiata has launched what it says is South Asia’s first fully standards based 5G pilot service in collaboration with Huawei.

    The successful demonstration involved the use of the operator’s Huawei-based RAN and core network with the most current 5G non-standalone architecture to transmit data to a 5G smartphone.

    Dialog Axiata group chief executive Supun Weerasinghe said the trial marks another step towards the operator’s introduction of 5G in the region. The operator has to date upgraded over 20% of its base stations to support Massive MIMO technology, giving them 5G ready status.

    “The success of South Asia’s first demonstration of a mobile 5G service is yet another milestone following our launch of a fully functional pre-commercial 5G network and builds on our significant investments into high speed broadband network infrastructure in Sri Lanka,” he said.

    “Dialog will continue to deliver on its promise of delivering the future today by leveraging the unique capabilities of 5G technology, to spearhead the country’s transformation into a regional technology hub.”

    Dialog Axiata launched its pre-commercial 5G network at the end of last year, demonstrating South Asia’s first fully functional and standards compliant 5G transmission using commercial grade base stations.

  • Ericsson to supply gear for XL Axiata’s 5G transport network

    Ericsson to supply gear for XL Axiata’s 5G transport network

    Indonesia’s XL Axiata has awarded Ericsson a contract to contribute to the deployment of the operator’s planned 5G ready transport network. Under the expanded partnership, Ericsson will provide 5G ready routers for the rollout over the next three years, commencing in the second quarter. Ericsson will provide its Router 6000 for all sites selected to be modernized under the contract. The router is optimized for 10G/100G connectivity, as well as the low latency, high accuracy internal clock and IPsec security capabilities required in 5G backhaul networks.

    “We are looking forward to continuing our partnership with Ericsson with state of the art transmission equipment,” XL Axiata director Yessie D Yosetya said.

    “We believe this will increase our network capacity performance and also beneficial for our customers to deliver a good user experience. This is one of our initiatives into the 5G era.”

    XL Axiata announced during Mobile World Congress in Barcelona that it has partnered with Huawei to construct Southeast Asia’s first 5G-ready simplified transport network covering all of Indonesia.

    Huawei is providing its Optical Networking 2.0 solution to help the operator simplify network architecture and build a simplified transport network.

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  • Celcom Axiata enters partnership with ZEE5

    Celcom Axiata enters partnership with ZEE5

    Malaysia’s Celcom Axiata has formed a partnership with Indian video content provider ZEE5 and telco API ecosystem provider Apigate to offer access to the ZEE5 content portfolio to its subscribers.

    Under the three-way agreement, Celcom will use Apigate’s Direct Carrier Billing API to provide customers with a secure payment mode to subscribe to ZEE5’s portfolio.

    ZEE5, a subsidiary of Zee Entertainment Enterprises, offers around 100,000 hours of Indian movies, TV shows, news and original content across 11 Indian languages and English.

    ZEE International CEO Amit Goenka said securing partnerships like the one with Celcom is a key component of the company’s aggressive global rollout plan for the next fiscal year.

    “Malaysia is a high focus market for us, given its huge affinity for Indian and South Asian content and growing appetite for online video content,” he said.

    “We will soon be launching content in international languages too including Malay, and we are extremely glad to partner with a key local operator like Celcom to jointly grow the opportunity in this market.”

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  • Axiata Digital joins Singtel’s cross-border m-payment alliance

    Axiata Digital joins Singtel’s cross-border m-payment alliance

    Singtel Group and Malaysia’s Axiata Digital have signed an agreement to collaborate in the areas of mobile financial and digital services to promote the growth of the ASEAN digital economy. Under the agreement, Axiata Digital will join Singtel’s cross-border mobile payment alliance VIA, expanding the alliance’s footprint beyond Singapore and Thailand to Malaysia.

    Axiata Digital operates the Boost Malaysia mobile wallet, which as 3.7 million customers and 66,000 merchant points across the nation.

    In addition, the Singtel Group’s Open Platform payment gateway will partner with Axiata Digital’s API platform to enable cross-sharing of product portfolios.

    Both parties have also agreed to jointly promote and drive cross-border payments and to explore collaboration around rewards and loyalty programs.

    VIA was launched in October with Thai partners AIS and Kasikornbank. AIS is one of Singtel’s regional mobile associates. Singtel group plans to expand the VIA initiative to cover other associates Bharti Airtel in India, Globe in the Philippines, and Telkomsel in Indonesia.

    “We are delighted to welcome Boost Malaysia on board the VIA alliance, which gives us presence in an important new market. This shows the tremendous potential for us to grow cross-border mobile payments even beyond the countries where Singtel’s regional associates operate,” Singtel CEO Arthur Lang commented.

    “VIA’s continued expansion will provide consumers with the ease and convenience of using one mobile wallet to pay across multiple regional markets as they travel. We look forward to more partners joining VIA.”

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  • Axiata’s share price falls 4.87% on RM2.16b tax bill

    Axiata’s share price falls 4.87% on RM2.16b tax bill

     Axiata Group Bhd’s share price fell 4.87% at mid-day after the group and its majority owned subsidiary Ncell Pte Ltd were ordered by the Nepal Supreme Court to pay capital gains tax of 61 billion Nepalese rupees (RM2.16 billion) for the Ncell buyout deal. At 12.30pm, Axiata was the eighth loser on Bursa Malaysia, trading at RM3.71 with 7.03 million shares changing hands.

    The Himalayan Times yesterday reported that Axiata had been hit with the tax bill, which excludes late fees and fines, for its US$1.36 billion purchase of Reynolds Holdings Ltd, which has 80% stake in Ncell, in 2015.

    The publication cited the Nepalese Large Taxpayers Office chief as saying it would only initiate the process of collecting the tax amount once it gets a copy of the tax verdict.

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  • Axiata slides 5% in early morning trade on tax bill

    Axiata slides 5% in early morning trade on tax bill

    Axiata Group Bhd saw some selling pressure in early morning trade on news that it had been hit with a capital gains tax bill of RM2.16bil by the Nepalese Supreme Court. The stock lost as much as 20 sen or 5.1% in early morning trading on Friday to a low of RM3.70. At 9.30am, the counter was down 14 sen or 3.59% to RM3.76 a share on the back of 1.57 million shares traded.

    Analysts said the news report by the Himalayan Times yesterday came as a negative surprise, which may impact the group’s FY19E earnings forecasts.

    Kenanga research made no changes to its FY18-19E earnings forecast pending its upcoming 4Q18 results but lowered its target price to RM4.50 from RM4.60 previously.

    “All in, we are keeping our Outperform call for now in view of its relatively decent valuation (Forward EV/EBITDA of 7.2x vs. peers of 12-13x) coupled with a stronger Celcom and earnings recovery at XL.

    “Bargain-hunting opportunity could potentially arise on any share price weakness due to the recent hiccup. We advocate investors to start accumulating the share at c.RM3.70 level,” it said.

    PublicInvest research said its core earnings forecasts remain unchanged but headline profit could see a sharp decline if Axiata paid the capital gains tax in FY19F.

    “Although our core earnings forecasts and Neutral call remain unchanged, we believe share price would react negatively to this news due to uncertainties and the potential downside to headline profit,” it said.

    It maintained its target price at RM3.85.

    In its response to news reports, Axiata said in a statement that it is yet to receive the judgment and order of the Supreme Court and is yet to receive any details of the order.

    “Ncell, Reynolds, and Axiata UK were given the full clearance by the Large Tax Payers Office of Nepal [LTPO] of its obligations to withhold any CGT payment on behalf of the Seller in relation to the Transaction via the letter from LTPO dated 4 June 2017, following the full and final payment made by Ncell, albeit under protest on the basis that CGT is not applicable on offshore transactions and even if applicable, any shortfall on payment is the responsibility of the Seller,” it said.

    The group said it would provide further updates upon receiving the order of the Supreme Court.

     

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