Maxis posts lower net profit of RM478m, declares 5 sen dividend

The group’s strong commitment has delivered good results for the period under review, says CEO

By LYDIA NATHAN / Pic By AFIF ABD HALIM

Maxis Bhd posted a net profit of RM478 million for the April to June 2018 period, lower than the RM572 million due to higher depreciation, amortisation, impairment, and higher operations and maintenance expenditure.

Maxis, the largest telecommunication company (telco) based on market capitalisation, also posted a lower revenue of RM2.24 billion for the second quarter (2Q) compared to RM2.33 billion in the corresponding quarter a year ago, the company told Bursa Malaysia in its filing yesterday.

The telco had also declared a second interim dividend of five sen per share for the period.

For the first six months of the year, Maxis said its earnings stood at RM1 billion compared to RM1.07 billion in the previous corresponding period, while revenue stood at RM4.48 billion compared to RM4.71 billion a year ago.

The company said its postpaid revenue grew 2.4% quarter-on-quarter (QoQ) to RM1.01 billion from RM985 million, with an average revenue per user (ARPU) of RM94.

“The steady growth of our subscription base stemmed from shared line growth as we continue to innovate to create value within family mobile plans,” Maxis said.

It added that with innovative device offerings, its Maxis-ONE Plan has continued to attract customers. Maxis added 67,000 new subscribers in the 2Q.

Its prepaid revenue stabilised with a 0.6% growth of RM854 million QoQ despite the overall softening of the market, intense price competition, SIM consolidation and migration to postpaid.

Its prepaid ARPU, meanwhile, remains stable at RM42 per month.

According to Maxis, service revenue grew 1.7% to RM2.013 billion from RM1.98 billion in the 1Q, driven by its postpaid and family-centric plans.

The telco also invested RM212 million in capex for the fourth-generation longterm evolution network, an increase of RM105 million from last quarter.

Maxis CEO Robert Nason said the group’s strong commitment and ambition to provide innovation, quality products and experiences have delivered the good results for the period under review.

“We are happy that we are seeing strong growth in postpaid and good progress in the recovery of our prepaid business. We will continue to focus on operational efficiencies and invest in sustaining a superior network,” he said in a statement.

Maxis’ share price rose five sen to close at RM5.55, making the company majority owned by billionaire T Ananda Krishnan worth RM43 billion.