“The y-o-y growth is ahead of our full-year growth expectation of 7%, while the q-o-q decline was due to the absence of Intouch’s contribution following its amalgamation with Gulf. Normalising for that, we estimate associate profit after tax (PAT) contributions increased 23% y-o-y and 4% q-o-q,” he wrote in an August 7 note.
The upside was led by India’s Bharti Airtel, which reported an 18% y-o-y increase in revenue and a 22% rise in ebitda in 1Q2026. Lower capital intensity drove a 52% jump in operating free cash flow to US$560 million ($719 million). With low leverage, Airtel has room to raise dividends, although management remains open to M&A, particularly in enterprise-related verticals.
Thailand’s AIS also delivered solid results. Service revenue rose 7% y-o-y and 2% q-o-q in 2Q2025 despite macroeconomic challenges. Tight cost control as well as declining depreciation and amortisation (D&A) and interest expenses supported earnings
AIS raised its full-year guidance, now projecting revenue and ebitda growth of 4% to 6%, up from 3% to 5% previously.
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While Indonesia’s Telkomsel and Philippines’ Globe Telecom reported weaker results, Saifee sees signs of a turnaround.
Telkomsel’s earnings fell 15% y-o-y in 2Q2025 as revenue declined 7% y-o-y mainly due to subdued consumer spending and the proliferation of cheap starter packs in the mobile segment.
Since March, however, Telkomsel and its peers have raised starter pack prices. Consumer spending has also shown improvement since June, helped by government fiscal stimulus.
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Telkomsel expects revenue to grow 5% half-on-half in 2H2025, with management pointing to a rebound in the consumer segment.
As for Globe, its earnings dropped 11% y-o-y in the quarter, following a 2% decline in service revenue due to subdued consumer demand. Still, revenue rose 1% q-o-q, supported by growth in mobile and broadband. GCash, Globe’s fintech unit, remained a bright spot – its earnings surged 71% y-o-y and accounted for 36% of group earnings.
“Management has maintained its full-year guidance of low single-digit revenue growth, which indicates recovery in 2H2025,” notes Saifee.
As at 3.21 pm, shares in Singtel are trading at $4.01 flat.
