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KUALA LUMPUR, May 17 — Telecommunication giant, Axiata Group Bhd is confident that it will be able to raise its dividend payout to 20 sen per share by 2024, which translates to a payout of RM1.8 billion in cash for a capital base of nine billion shares.
Group chief executive officer Datuk Izzaddin Idris said the telco has shifted its gear to transform into a high dividend company — supported by short — to long-term strategies that would drive growth while creating long-term value for its shareholders.
“Moving forward, our robust financial and structural fundamentals will bolster our defences against current and future uncertainties as we continue to capture emerging growth opportunities, accelerate digital transformation, invest in cutting-edge network infrastructure and deliver on the high dividend expectations of our shareholders,” he said in the Axiata Integrated Annual Report 2020 released today.
On its short-term strategy, Izzaddin said Axiata will maintain a tightly calibrated approach to business in 2021, given that ongoing global vaccination efforts could stabilise the crisis; but noted that operating markets will need some time to regain economic growth momentum.
He added that industry challenges such as network capacity demand, consumer relief imperatives and ongoing regulatory uncertainties are expected to continue.
In the meantime, Axiata has allocated a capital expenditure of RM6.5 billion to support its growth and future-readiness, said Izzaddin.
“Axiata’s investment strategy remains aligned to the principle of investing, where there is market demand or growth opportunity subject to a favourable regulatory and enabling environment.
“We expect to continue our investment thrust in Indonesia with an emphasis on regions outside Java (ex-Java), and similarly in regions beyond Comilla, Chittagong and Dhaka in Bangladesh,” he said.
In the medium-term, Izzaddin said Axiata will continue to grow its digital business in partnership with regional and global leaders to bring to fruition its innovation and business creation efforts over the past years.
It will also continue to seek market consolidation opportunities across territories and commit to establishing a framework for 5G Leadership in each of its operating markets.
Izzaddin added that in the long run, Axiata will continue to prioritise cash and profitability while being relentless in its focus on group synergies and operational excellence to deliver on its customer promise in all of its markets. — Bernama
Source: Malay Mail
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