Maxis’ net profit eases to RM334m in 1Q21

by BERNAMA / pic by TMR FILE

KUALA LUMPUR – Maxis Bhd’s net profit eased to RM334.0 million in the first quarter ended March 31, 2021 (1Q21) from RM357.0 million in the same quarter last year.

In a filing with Bursa Malaysia today, the communications service provider said revenue declined 4.8 per cent cent to RM2.228 billion during the quarter under review from RM2.341 billion previously.

Service revenue was down RM10 million, by 0.5 per cent, to RM1.959 billion against RM1.969 billion in 1Q20.

This was largely attributed to lower international direct dial (IDD) revenue and a temporary lack of international roaming income offset by growth in enterprise and fibre businesses, it said.

In a media statement today, Maxis said it continued to build momentum towards growth in 2Q21 with profit after tax gaining 4.7 per cent from 4Q20, despite the challenging environment caused by the pandemic.

Profit after tax, however, slipped by 6.4 per cent compared with 1Q20 due to higher depreciation in information technology (IT) investments.

Meanwhile, Maxis has declared a four sen interim dividend for the quarter to allow the company to protect its core business in preparation for opportunities arising from an economic recovery.

“Together with our differentiated network, product innovation and committed people, we will continue to serve individuals, homes and businesses to help them thrive in this new norm of accelerated digitalisation,” said chief executive officer Gökhan Ogut.

On prospects, the company said it has not disclosed a financial outlook for the financial year 2021.

It said this was because of the uncertain environment such as the high unemployment rate since the initial Movement Control Order, the gross domestic product growth outlook, the third wave of COVID-19 and the vaccine rollout.

“The continuation of loan repayment moratorium only to targeted groups from Oct 20, 2020 resulted in an unpredictable environment for our business this year,” it said.