Maxis Delivers Solid Q2, Backed By Growth In Postpaid And Home Fibre Segment

Maxis Berhad delivered another solid quarter with the nations continues rise in telecommunication services adoption. The better results were also attributed to lockdown measures and the prolonged pandemic which has spurred the need for embracing digitalisation among all sectors and individuals, with many moving their offices into homes.

For Q2 2021, the company continued to see strength in its core mobile and home broadband businesses, which drove solid service revenue as well as EBITDA and Profit After Tax (PAT)growth. During the quarter Maxis saw solid growth in its Postpaid and Home Fibre services.

The group saw its service revenue grow by 3.1% to RM1.98 billion with normalised ebitda growing by 6.1% to RM1.01 billion while profits increased by 5.03% to RM360 million. Postpaid revenue continues to come in strong at RM1 billion million, a 2.2% increase since Q2 2020 and had a healthy 7.0% growth of subscriber base, mainly for its Maxis Postpaid and Hotlink Postpaid subscribers. Monthly ARPU was at RM81 although lower from RM85 in Q2 2020 due to the dilution effect from increased subscribers adopting Hotlink Postpaid.

Prepaid had a drop in subscriber base recording a 0.6% dip while revenue was as at RM685 million, however, Maxis is optimistic with its Hotlink Prepaid Unlimited which is receiving good response especially from the underserved and B40 segment. Prepaid ARPU did remain stable at RM38 for the quarter.

Home Fibre has reached critical scale with 654k for fixed and wireless subscribers, a strong growth of 28.5% with revenue increasing by 23.5% to RM163 million with an 18.5% increase in connections. This was attributed to strong adoption of Maxis Unlimited Postpaid & Fibre and higher-end plans, resulting in ARPU remaining firm at RM109. Of this Home 4G Broadband saw an increased ARPU to RM114 and subscribers increased by 70.4% particularly in non-fibre coverage areas, leveraging Maxis 4G/LTE superior network.

A 4 sen interim dividend was declared for the quarter as productivity, collections and cash management initiatives are delivering as planned in the “new pandemic normal”. Maxis’ capex for the quarter stood at RM180 million to support the data traffic growth, as well as investment in Fibre and Enterprise growth.

“While we are pleased with the strong performance that we have achieved for the quarter, we will remain focused on ensuring that our customers – from individuals, homes, and businesses – have access to the best solutions and services. We are committed to investing in Malaysia by driving greater digital adoption for businesses, expanding our network and building new capabilities and talent.”- CEO Maxis Gokhan Ogut

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