The announcement did not provide the estimated value of the arrangement, which will be determined by usage at the agreed rates. While some revenue will be generated from utilizing Celcom’s network, we expect minimal earnings contributions from webe over the medium term given its low subscriber base relative to the 4 main cellular operators currently contending for market share. Hence, we are neutral on this development.

Even though Axiata currently trades at a bargain FY18F EV/EBITDA of 5x, way below its Maxis’ 13x, the group’s likely weak 4QFY18 results announcement later today from further year-end asset impairments amid deteriorating overseas risk profile from Nepal’s additional capital gains tax charge on NCELL acquisition and intense competition from both local and overseas mobile operations constrain upside momentum. Additionally, the government’s intention to reduce Khazanah Nasional’s GLC holdings casts possibilities of a share overhang over the medium term.

Industry Comparision Mobile Services (Malaysia):

1. AXIATA
2. DIGI
3. MAXIS
4. REDTONE
5. XOX

Axiata most welcomed ...?Shares...?

[KLSE Stock Series] Check out the latest Malaysia Telco stocks analysis:

1. Axiata

2. Digi

3. Maxis

4. Redtone

5. TM

https://malaysiainvestment88.blogspot.com/2022/05/5g-telecommunication-investment-in.html

Axiata’s Strategic Pivot: Transformation or Illusion?

Axiata once built its reputation as a sprawling mobile operator across Asia. Today, it claims to have transformed into a regional digital connectivity platform, with ventures in fintech, infrastructure, and enterprise services.

The story is compelling: exits from risky markets, mergers to consolidate strength, and a shift toward platform-driven growth. On the surface, this looks like a company ready to ride Southeast and South Asia’s booming digital wave.

But when you peel back the numbers, the picture is less inspiring. Over the past decade, revenue has barely grown, returns on capital still trail the cost of capital, and margins remain stuck. Even compared with peers, Axiata ranks near the bottom on profitability and shareholder returns.

So the question is — has Axiata truly pivoted into a stronger, value-creating business, or is this just another corporate reinvention that sounds better than it performs?

My deep-dive analysis suggests cautious optimism but no margin of safety at today’s price. Axiata may be worth watching — but is it worth buying yet?.

For more insights go to Axiata’s Strategic Pivot: Progress or Premature Optimism?