Maxis Q3 net profit edges up to RM365m

by BERNAMA / pic by TMR FILE

MAXIS Bhd’s net profit for the third quarter ended Sept 30, 2020 (Q3 2020) rose slightly to RM365 million from RM358 million in Q3 2019.

Revenue, however, declined by 3.2 per cent to RM2.21 billion from RM2.28 billion previously, it said in a filing to Bursa Malaysia today.

The company said service revenue was unchanged at Q3 2019’s RM1.94 billion, with the loss of the wholesale business and international roaming income due to COVID-19 offset by the growth in enterprise and fibre businesses.

The service revenue excluding wholesale revenue was up RM10 million to RM1.93 billion compared to Q3 2019’s RM1.92 billion.

Meanwhile, postpaid service revenue decreased to RM956 million from RM979 million previously, while the average revenue per user (APRU) decreased to RM84 in Q3 2020 from RM90 in Q3 2019, largely due to the mobile termination rate reduction, dilution effect from Hotlink Postpaid and the lack of international roaming income.

Prepaid service revenue declined to RM717 million from RM794 million as prepaid subscription base fell to 5.91 million from 6.33 million due to the continued SIM consolidation, successful migration to the Hotlink entry point postpaid service and lower foreign worker base.

Prepaid ARPU remained stable at RM40 against RM41 in Q3 2019.

Maxis said normalised earnings before interest, tax, depreciation, and amortisation was down to RM924 million versus RM964 million, however, normalised profit was higher at RM364 million from RM361 million.

The company’s capital expenditure for the quarter stood at RM319 million, higher than RM242 million in Q3 2019, with investment focused on protecting network performance and rebalancing capacity, 5G readiness and enterprise business.

“In April, the group withdrew its previously advised financial year 2020 guidance until there is more clarity around the longevity and impact of the pandemic.

“Given the uncertainties, the group considered it prudent not to disclose a new outlook,” it said.

In addition, Maxis is closely monitoring and assessing the impact of COVID-19 and when it becomes appropriate to disclose any material information, it will be made in accordance with the Main Market Listing Requirements.

“The group remains in a good financial position to weather the crisis created by the COVID-19 pandemic. Our balance sheet remains healthy and our funding and liquidity are well positioned.

“The group has taken action to protect the safety of its employees, customers, the broader Malaysian economy, and core operations, and remains alert to opportunities to strengthen and grow its business during this period of uncertainty,” it added.