Maxis earnings increase 4.2% in 1Q18

Continuous cost optimisation efforts offset the lower services revenue

By NG MIN SHEN / By TMR

Maxis Bhd’s net profit climbed 4.2% to RM523 million for the first quarter ended March 31, 2018 (1Q18), from RM502 million posted a year earlier, helped by continuous cost optimisation efforts.

Quarterly revenue, however, dipped 5.7% to RM2.24 billion from RM2.38 billion registered a year ago, mainly on lower services revenue, which fell 4.6% year-on-year (YoY) to RM1.98 billion in 1Q18, largely due to declining prepaid services revenue.

The telecommunications services provider (telco) in a statement yesterday said postpaid services revenue grew 5.2% to RM985 million in 1Q18 from RM936 million last year, registering the highest shared Quarterly revenue, however, dipped 5.7% to RM2.24 billion from RM2.38 billion registered a year ago, mainly on lower services revenue, which fell 4.6% year-on-year (YoY) to RM1.98 billion in 1Q18, largely due to declining prepaid services revenue.

The telecommunications services provider (telco) in a statement yesterday said postpaid services revenue grew 5.2% to RM985 million in 1Q18 from RM936 million last year, registering the highest shared line acquisition and increased average revenue per account through mobile and fixed offerings.

“This was supported by monthly postpaid average revenue per user (ARPU) of RM92 and our flagship MaxisONE plan, which registered 283,000 new additions YoY — bringing the total base to two million customers,” it said.

The growth in postpaid was offset by prepaid services revenue, which dropped 15.5% from RM1.01 billion last year to RM849 million during the quarter on the back of a lower subscription base.

Blended ARPU was unchanged at RM56 for the 1Q18, while postpaid ARPU slid to RM92 from RM96 in 1Q17 and prepaid ARPU slipped to RM41 from RM42 last year.

Normalised earnings before interest, tax, depreciation and amortisation (Ebitda) stood at RM1.02 billion for the quarter, with a margin on services revenue of 51.5% against RM1.024 billion and 49.3% respectively recorded in 1Q17.

“This was mainly a result of continuous cost optimisation initiatives that offset the lower services revenue,” the telco said.

Maxis declared an interim single-tier dividend of five sen per share for the financial year ending Dec 31, 2018 (FY18), to be paid on June 28, 2018.

It said in a separate exchange filing yesterday that capital expenditure for the 1Q18 decreased to RM107 million due to lower spending on network capacity.
Free cashflow contracted to

RM165 million against RM274 million a year ago, largely due to the upfront spectrum assignment fee paid during the current period.

The upfront spectrum fee, in addition to a fourth interim dividend payout totalling RM391 million for FY17 paid on March 29, 2018, has resulted in an increase in net debt-to-Ebitda ratio from 1.63 times as at end-2017, to 1.77 times as at end-March 2018.

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