Maxis has released its quarterly report for the second quarter with service revenue moving up 3.2% year on year to RM2.11 billion while EBITDA was maintained at RM1 billion. Profit after tax also increased by 2.2% to RM329 million and will be declaring a 0.4 sen dividend for the quarter.
On a year-on-year, Service Revenue excluding wholesale voice improved by RM65 million (3.2%), driven by the growth in
Consumer and Enterprise businesses, particularly in core mobile connectivity. EBITDA and EBIT decreased RM10 million (1.0%) and RM29 million (4.9%) respectively. The reduction in EBITDA was due to lower USP income following lower project fulfilments in 2023, while the reduction in EBIT was further impacted by amortisation costs from spectrum and software. Profit After Tax increased as the decline in EBIT was offset by the discontinuation of Prosperity Tax in 2023
Service Revenue excluding wholesale voice grew RM189 million (4.7%), driven by RM158 million (4.7%) increase in
Consumer business and RM31 million (4.7%) increase in Enterprise business. EBITDA increased in line with the increase of Service Revenue, offset by lower USP income as there were lower project fulfilments in 2023. The reduction in EBIT was due to higher amortisation costs from spectrum and software. The increase in Profit After Tax was due to the discontinuation of the Prosperity Tax in 2023. YTD June 2023, OFCF was healthy at RM1,131 million, supporting the 4 sen dividend per share declared in the current quarter, and the cumulative 8 sen dividend per share declared for the YTD June 2023. Postpaid subscriptions grew 6.3% to 3.4 million, with a stable ARPU at RM78 however, Prepaid revenue contracted 4.1% to RM651 million.
Maxis said it remains focused and confident in becoming the leading integrated telco in Malaysia by delivering its convergence strategy. The telco added that it had expanded its market share leadership and will continue to enhance its product offerings of converged solutions to individuals, homes and businesses delivering sustainable growth.
During the quarter, Maxis invested RM166 million in capex with a priority to maintain network quality and to better serve its customers. Maxis looks forward to offering 5G-related products and services to its customers soon, after signing the 5G Access Agreement upon approval from its shareholders at the upcoming Extraordinary General Meeting.
Comment from Goh Seow Eng, Maxis CEO: “We are on the right track for stable growth in a competitive telco landscape. Our focus will always be on customer experience in terms of products, services, network and digitalisation. Very soon, we will offer 5G plans with attractive value for all segments.”
Guidance for the financial year ending 31 December 2023 is: a low single-digit increase in service revenue; and EBITDA and Capex at similar levels to the financial year 2022
