Maxis second quarter net profit at RM397mil

Gokhan: Our 5G live trials are progressing well. We continue to be at the forefront of introducing new technologies to Malaysia.

KUALA LUMPUR: Maxis Bhd, which posted a net profit of RM397mil in the second quarter ended June 30, has declared a second interim dividend of 5 sen net per share.

Its second quarterly profit was down 16.9% from RM478mil in the same quarter a year ago. Revenue in the second quarter was flat at RM2.2bil versus RM2.24bil in the same corresponding period last tear. Its earnings per share stood at 5.10 sen from 6.10 previously.

Maxis said the second interim single-tier tax-exempt dividend of 5.0 sen per ordinary share in respect of the financial year ending Dec 31, will be paid on Sept 26 while the entitlement date for the dividend payment is Aug 30.

In the first six months, Maxis posted a net profit of RM806mil, or 10.30 sen earnings per share on revenue of RM4.43bil.

Maxis said it registered a healthy normalised ebitda at RM947mil, a slight dip of 0.6% from RM953mil in 1Q19. Its normalised ebitda margin on service revenue remained high at 49.4% against 48.9%.

Normalised net profit for the quarter stood at RM391mil, fell 3.2% from RM404mil in 1Q19.

Operating free cash flow increased to RM1.02bil from RM565mil in 1Q19 as a result of lower payments in the current quarter as well as the productivity and working capital programmes capturing results.

Backed by resilient core performance (excluding wholesale revenue), Maxis said its service revenue was up 0.6% to RM1.88bil from RM1.87bil. Overall service revenue, including wholesale, stood at RM1.91bil , 1.5% lower from RM1.94bil in 1Q19.

Maxis said it continued to the lead the postpaid market, registering consistent growth in subscribers with a high monthly ARPU (average revenue per user) of RM91.

“Our Hotlink Postpaid Flex and MaxisONE Share offering continued to attract entry level postpaid subscribers, as well as those migrating from prepaid to postpaid.

“This contributed to growth of postpaid subscribers by 96,000, bringing the total base to 3.1 million.

“With a larger base and strong engagement of customers with a MyMaxis app adoption at 43% and monthly data usage of 13.3GB, postpaid revenue, including wholesale, was steady at RM972mil, slightly down from RM1bil in Q1 2019,” the telco said in a statement.

Maxis said the ARPU for prepaid stabilised at RM41 and experienced strong data growth. Prepaid subscribers declined slightly to 6.41 million this quarter, largely due to continued SIM consolidation and migration from prepaid to postpaid.

Maxis added 30,000 fibre subscribers bringing the total to 310,000 in the second quarter.

Maxis CEO Gokhan Ogut said the telco was making very good progress in executing its five-year growth plan to be Malaysia’s leading converged communications and digital services company, while maintaining its leadership in our core mobile business.

“This quarter saw us making headway in our converged ambitions with the launch of new fibre speeds, delivering smart solutions for enterprises and championing Industry 4.0 initiatives in line with the government’s digital economy agenda. The potential of 5G in a future of smart solutions is tremendous.

“To this end, our 5G live trials are progressing well. We continue to be at the forefront of introducing new technologies to Malaysia. Overall, we will stay focused on our priorities – offering customised solutions and services for individuals, homes and businesses and achieving a differentiated and unmatched personalised experience through our digital capabilities and technology innovation,” he said.

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