Axiata to hike Capex to RM 6.6 billion in 2020

Axiata has revealed the group’s financial performance and investments in several countries across Asia.
Axiata Capex in 2019Axiata is planning capital expenditure of RM 6.6 billion in 2020 as compared with RM 6.2 billion in 2019.

Axiata has also revealed Axiata 5.0 strategy – that will be driven by eight growth pillars — to focus on profitable growth and cash generation.


Axiata announced the appointment of Dato’ Mohd Izzaddin Idris as deputy group CEO and group CEO-designate with immediate effect as of 24 January 2020. Izzaddin will succeed as Group CEO by December 2020.

Tan Sri Jamaludin will continue as group CEO to end December 2020 with focus on a smooth and leadership transition.

Izzaddin has served on Axiata’s Board since November 2016 and assumed other responsibilities within the organisation. He is also involved in the OpCos as the chairman of Robi and a board member of Dialog.

Axiata revenue

Axiata said revenue rose 2.9 percent to RM 24.583 billion, while EBITDA grew 27.4 percent to RM 10.619 billion.

Axiata reported profit of RM 1.815 billion driven by better underlying performance, lower depreciation, amortisation and assets written off, discontinuation of lose related to its investment in Idea Cellular in India, gain on disposal of non-strategic investments and gain on disposal of rights of investment in India.

Cost excellence generated savings of RM 1.3 billion in FY19. Opex savings of RM 0.6 billion kept cost flat, whilst FY19 actual Capex spend was RM 0.6 billion below budget of RM 6.8 billion.

Axiata in regions

Celcom in Malaysia reported that the negative impact of downward revision of domestic interconnect and roaming rates and lower device sales led to 8.6 percent dip in revenue to RM 6.706.1 billion. EBITDA increased 37.4 percent to RM 2.618 billion due to lower operating costs. Capex of Celcom was RM 1,019 million in 2019 against RM 1,056 million in 2018.

XL in Indonesia reported that revenue grew 13 percent to RM 7.363 billion driven by data growth. EBITDA increased 47.2 percent to RM 3.721 billion. Capex of XL Indonesia was RM 2,361 million in 2019 as against RM 2,097 million in 2018.

Robi in Bangladesh posted that revenue increased 12.2 percent to RM 3.672 billion driven by growth in data and voice. EBITDA increased 76.7 percent to RM 1.404 billion mainly flowing from higher revenue while operating expenses remained almost flat. Capex of Robi Bangladesh reached RM 678 million in 2019 from 994 in 2018.

Robi is also planning for an initial public offering (IPO).

Dialog in Sri Lanka reported that revenue declined 0.2 percent to RM 2.708 billion due to forex translation. EBITDA remained almost flat at RM 1.082 billion. Capex of Dialog Sri Lanka reached RM 642 million from RM 766 million.

Ncell in Nepal reported that revenue declined 6.3 percent to RM 1.979 billion mainly due to decline in voice and data as impacted by the implementation of Telecommunication Services Charges in Nepal since July 2018. EBITDA dropped by 8.3 percent to RM 1.193.3 billion. Capex of Ncell Nepal reached RM 571 million from RM 153 million.

Smart in Cambodia reported that revenue grew 12.6 percent to RM 1.306 billion due to strong data revenue growth. EBITDA grew 27.8 percent to RM 695.2 million. Capex of Smart Cambodia reached RM 316 million from RM 297 million.

Edotco, the telecom infrastructure business in Malaysia, reported annual revenue of RM 1.809 billion, registering 18.2 percent growth. EBITDA grew 62.6 percent to RM 1.112 billion. Edotco’s Capex reached RM 598 million from RM 742 million.