Maxis 2Q net profit slipped 8.6% to RM329m, declares 5 sen dividend

by ANIS HAZIM / Pic MUHD AMIN NAHARUL

MAXIS Bhd’s net profit slipped 8.6% to RM329 million for the second quarter ended June 30, 2022 (2Q22), from RM360 million a year ago, due to higher depreciation and amortisation charges together with the one-off increase in the corporate tax rate.

Subsequently, its earnings per share were down to 4.2 sen from 4.6 sen.

Quarterly revenue also declined by 6.6% to RM2.42 billion from RM2.27 billion in the previous year, according to a filing to Bursa Malaysia today.

For the quarter under review, Maxis declared a second interim dividend of five sen per share payable on Sept 30, 2022.

Meanwhile, its service revenue rose by 4.3% to RM2.08 million from RM2 million last year on the back of better contributions from both consumers and enterprises.

Maxis said in a statement on Thursday that its subscribers for the postpaid segment continued to increase by 7.5% growth, bringing the total number of postpaid subscriptions to 3.2 million.

“With borders reopening leading to the influx of tourists and foreign workers, prepaid was resilient with Hotlink Prepaid Unlimited and Hotlink Prepaid Pantas offerings proving to be popular,” it said.

The segment also had the highest average revenue per user in 18 months at RM39.10, due to increased Internet spending encouraged by the introduction of new internet passes of HotlinkMU.

Its home connectivity was up by 18.1% to 638,000 subscribers from 540,000 subscribers in the same period the previous year.

On a quarter-on-quarter basis, net profit increased 10.4% from RM298 million, while revenue rose slightly by 0.7% from RM2.41 million in 1Q22.

Commenting on its result, Maxis CEO Gökhan Ogut (picture) said the solid performance across all of its segments underlines the group’s sharp focus on its strategy and agility.

“We are well-positioned for continued growth in a rapidly changing and competitive telco landscape.

“We are focused on continuously improving our converged network performance and leveraging our strong talent pool in striving to deliver the best innovation and services to our customers,” he said.

Maxis’ share price closed 4.61% or 16 sen higher to RM3.63 yesterday, valuing the group at RM28.35 billion.