Maxis posts RM1.38 billion net profit in FY20


Maxis Berhad’s net profit for the financial year ended Dec 31, 2020 (FY20) fell to RM1.38 billion than RM1.51 billion reported in 2019.

The telco also recorded lower revenue of RM8.97 billion last year against RM9.31 billion in the year prior.

For the fourth quarter (4Q20), Maxis’ net profit declined to RM319 million, versus RM353 million reported in the corresponding quarter in 2019.

In the same quarter, Maxis saw its revenue fell by 12.7% to RM2.26 billion from RM2.59 billion a year ago.

The group recorded continuous leading in the postpaid segment, with another quarter of subscription growth, as well as steady momentum on the fibre front in subscriptions from both families and businesses.

Maxis CEO Gökhan Ogut said the company’s agility in meeting the unique environment’s demands has enabled it to continue progressing towards its convergence ambition.

“While we remain cautiously optimistic of the new norm for 2021, we will continue to develop more innovative solutions beyond mobile and create new opportunities for growth for businesses across industries.

“It was indeed a challenging year for everyone, particularly for those most impacted by the pandemic and floods,” he said in a statement.

For the quarter, the group has declared a 4 sen interim dividend with an additional 1 sen special interim dividend for the quarter, on early gains from its working capital initiatives.

Performance-wise, the group saw resilient service revenue at RM1.94 billion on the growth recorded by core mobile, enterprise and fibre businesses, while its postpaid growth saw the subscriber base expand by 4.0% to 3.5 million customers.

Meanwhile, its prepaid market is under pressure with contraction in subscription of 4.4% to 6 million subscribers and lower average revenue per user (ARPU) of RM39 on continued SIM consolidation, seeing 11.1% YoY revenue decline to RM696 million.

In home connectivity, growth was at a solid double-digit rate with 21.8% increase in both fibre and wireless YoY, bringing the total up to 570,000 as well as continued strengthening of wireless connection segment where subscriptions increased by 27.3% to 126,000 and revenue grew 16.7% YoY to RM35 million.

The group also saw over increased adoption of digital services, as 73% of its prepaid mobile internet customers are using the Hotlink App versus the 63% recorded in the last year, while 58% of its postpaid primary account holders are on the Maxis App versus 49% last year.

Moving forward, the pandemic continues to raise concerns for the company as it is difficult to reliably predict how long it would take to contain the virus which has impacted demand for services and solutions both locally and internationally.

“Given these uncertainties, the Group considered it prudent not to disclose a financial outlook for the financial year of 2021.

“The group is gathering more details about the announcement and closely monitoring and assessing the impact of Covid-19,” it said in a filing with Bursa Malaysia today.