KUALA LUMPUR: Axiata Group Bhd has no plans to exit other markets following its recent divestment in Myanmar, maintaining its business operations as usual.
Axiata group chief executive officer and managing director Vivek Sood clarified that the Myanmar divestment pertains to one of its subsidiary operating companies, Edotco Investments Singapore Pte Ltd.
Sood said this asset was performing relatively well, but due to the deteriorating operational environment on the ground in Myanmar, the country's risk profile has increased substantially.
"Thus, we took the opportunity to exit the market due to the continued deterioration in the operating environment and macroeconomic conditions, such as the sanctions imposed on certain parties in Myanmar and the overall global risk position of the country.
"At the moment, there's no other plan other than Myanmar, so we continue business as usual," he told a media conference after Axiata's 32nd annual general meeting (AGM) here today.
Sood highlighted that moving forward, Edotco will be focusing on the Philippines and Indonesia markets for its expansion.
"In 2022, Edotco acquired some towers in the Philippines and Indonesia, marking our entry into what we feel are growing markets. Our focus now will be on growing in these emerging economies.
"Axiata has already secured orders from the sale and leaseback arrangements in both the Philippines and Indonesia, with built-to-suit orders in place for both countries," he said.
Sood said Axita will focus on accelerating its synergies from post-integration costs and capitalising on the benefits of market consolidation and on the company's market leadership.
The company is also continuing with structural transformation in Indonesia, accelerating the transformation of XL Axiata into a converged ServeCo and Link Net into a pure-play FibreCo, and capitalising on the synergies between the two operations.
"Axiata is pursuing its market consolidation efforts in Indonesia, having entered a non-binding Memorandum of Understanding (MOU) to explore a proposed merger between XL Axiata and another local player," he said.
In frontier markets, Sood said Axiata has led industry consolidation in Sri Lanka, with its unit Dialog acquiring a 100 per cent stake in its smaller competitor, Airtel Lanka.
Post integration, he said Dialog is expected to deliver higher topline growth, expand margins and increase profitability, with the opportunity for higher dividends, resulting in higher returns of value to shareholders.
"In addition, our digital businesses continue to show strong growth potential, with their combined revenue now exceeding RM1.0 billion.
"We are also gearing up for the public launch of Boost Bank in June, which will offer a differentiated, embedded banking experience as we aim to expand financial inclusion," he added.
