Maxis records RM365m 3Q net profit


MAXIS Bhd’s net profit for the third quarter ended Sept 30, 2020 (3Q20) rose slightly to RM365 million from RM358 million in 3Q19.

Its revenue declined 3.2% to RM2.21 billion from RM2.28 billion previously, it stated in a filing to Bursa Malaysia yesterday.

The company said the service revenue, excluding wholesale revenue, was up RM10 million to RM1.93 billion compared to 3Q19’s RM1.92 billion.

Postpaid service revenue decreased to RM956 million from RM979 million previously. Meanwhile, the average revenue per user (ARPU) decreased to RM84 in 3Q20 from RM90 in 3Q19, largely due to the mobile termination rate reduction, dilution effect from Hotlink Postpaid and lack of international roaming income.

Prepaid service revenue declined to RM717 million from RM794 million as the 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 3Q19.

Maxis said its normalised Ebitda was down at RM924 million versus RM964 million, however, the group’s 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 reported in 3Q19, 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,” said Maxis in a statement.

Maxis is closely monitoring and assessing the impact of Covid-19, and once 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.

Maxis announced that its chief technology and information officer Morten Bangsgaard submitted his resignation and will be leaving Maxis at the end of the year to pursue a new opportunity elsewhere. Bangsgaard held the role for over six years, continuously keeping Maxis ahead with new technologies among other players in the telecommunications industry.