Maxis 1Q net profit up 10%, declares 4 sen dividend

MAXIS Bhd reported a 10% year-on-year increase in net profit for the first quarter, driven by heightened service revenue and efficient cost management.

The company’s net profit for the quarter ended March 31, 2024, reached RM353 million compared to RM320 million during the same period last year.

According to its exchange filing, Maxis quarterly revenue also experienced a 3% year-on-year rise, reaching RM2.6 billion.

Maxis announced its first interim dividend of 4 sen per share, scheduled for payment on June 24.

Its CEO Goh Seow Eng expressed confidence in the company’s integrated telco growth strategy, emphasising continued investments in network infrastructure and digitalization to meet customer connectivity demands.

Comparing quarter-on-quarter performance, net profit surged significantly from RM56 million, while revenue declined by 5.1% from RM2.7 billion due to lower device sales in the final quarter of 2023.

Maxis reaffirmed its full-year guidance, expecting a “low” single-digit increase in service revenue, stable Ebitda, and capital expenditure to remain below RM1 billion, excluding any potential financial impact from 5G deployment.

Following the announcement, Maxis shares surged over 4% to an intraday high of RM3.77, the highest level since February 28. The stock settled at RM3.72 by market close, marking a 2.76% increase, with a market capitalization of RM29.14 billion. — TMR