Maxis’ Converged Offering Pays Off With Strong Q1 Performance

Maxis Berhad has recorded another resilient quarter, as it continued to ramp up investments to build strength in its core Mobile business while accelerating the growth of Fibre and Enterprise business in a continued challenging environment.

The company delivered an increase of 3.0% year-on-year in Service Revenue for the quarter to RM2.03 billion with stable EBITDA of RM930 million and Profit After Tax of RM298 million. Maxis declared an interim dividend of 5 sen net per share for the quarter.

Comment by Gökhan Ogut, CEO, Maxis: “I am pleased with our strong start to the year and our resilient performance clearly shows that our convergence strategy is on the right track. Our top priority is to continue to deliver a great converged network with an unmatched personalised experience across all channels for our customers. We are committed to building and connecting communities for the digital future of the nation.”

Q1 financial highlights Year-on-Year – Q1 2022 vs Q1 2021

  • Service revenue rose to RM2.03 billion up 3% YoY, driven by Postpaid, Home Connectivity, and Enterprise Business.
  • Consumer Business revenue registered solid growth, increasing 2.4% to RM1.64 billion, driven by Maxis’ convergence strategy which reaped rewards despite a weakening prepaid market.
    • (Maxis Postpaid & Hotlink Postpaid) was robust, with overall subscriptions up 9.2% YoY.
    • segment remained resilient with high adoption of the attractive Hotlink Prepaid Unlimited and Hotlink Prepaid Pantas plans.
    • recorded strong numbers with connections up 19.2% YoY and an increase in service revenue by 21.2% to RM200 million. Home Fibre saw an additional 24k connections in Q1 alone driven by strong adoption of Maxis Unlimited Postpaid & Fibre converged packages.
  • Enterprise service revenue increased to RM388 million, up 5.4% as Maxis continues to build a strong foundation of accounts in its journey to become the No. 1 ICT Solutions Provider. EBITDA was stable at RM930 million versus the previous quarter, although dipping slightly by 3.2% YoY, mainly due to increased contracted device volume driving device subsidies, which will provide consistent revenue over the contract period in the coming months. Profit before tax was at RM298 million, lower YoY mainly from the spectrum rights amortisation. Meanwhile, PAT increased 3.1% QoQ due to lower depreciation costs with the 3G network fully shutdown.
  • Capex for the quarter stood at RM171 million, up 25.7% YoY as the Company continued to invest heavily into strengthening its ubiquitous access and platforms to deliver on Enterprise solutions, as well as rebalancing capacity.

Achieved commercial targets for JENDELA in Q1 2022, accelerating capacity for both mobile and fixed, with 12 new sites, 609 upgraded, and expanding fibre footprint to 3k premises passed.

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