Maxis confident of weathering Covid-19 crisis


Maxis chief executive officer Gökhan Ogut said the group delivered a strong second quarter performance amidst a challenging environment.

PETALING JAYA: Maxis Bhd is confident of weathering the crisis caused by the Covid-19 pandemic, underpinned by its strong financial position.

In a filing with Bursa Malaysia yesterday on its second quarter earnings, the telco said its balance sheet remains strong and its funding and liquidity are well positioned.

“The group has taken action to protect the safety of its employees, customers, the broader Malaysian economy and its core operations and remains alert to opportunities to strengthen and grow its business during this period of uncertainty.”

As an essential service provider, Maxis said it remains open for business via execution of its business continuity plan. “Measures have been put in place to ensure both fixed and mobile networks remain uninterrupted despite a dramatic increase in demand. We maintain our network performance leadership that our customers respect.”

For its second quarter ended June 30,2020, Maxis reported a net profit of RM343mil compared with RM397mil in the previous corresponding period, while revenue stood at RM2.15bil compared with RM2.21bil a year earlier. For the six-month period ended June 30,2020, the telco reported a net profit of RM701mil compared with RM806mil in the previous corresponding period, while revenue stood at RM4.49bil compared with RM4.44bil a year earlier.

In a statement yesterday, Maxis chief executive officer Gökhan Ogut said the group delivered a strong second quarter performance amidst a challenging environment.

“We continued to lead the mobile market and turn in consistent growth in our converged solutions for individuals, homes and businesses. We are confident of playing a key role as a catalyst for digitalisation for consumers and businesses, which is in line with our recent brand refresh built around our new brand purpose.”

During the second quarter of 2020, Maxis said it registered strong postpaid results, leading the market with revenue (excluding wholesale) growing 2.1% to RM961mil from RM941mil in the second quarter of 2019.

“The quarter saw continued strong prepaid-to-postpaid migration as customers step up for higher value tiers especially Hotlink Postpaid.

Postpaid average revenue per user decreased to RM85 from RM91, reflecting a reduction in the mobile termination rate, reduced international outbound roaming, the dilution effect from Hotlink Postpaid and Maxis Postpaid Share Line.

The company also said its prepaid segment remained very competitive during the period under review. The movement control order has put a constraint on physical retail channels and field sales team in April and May. Prepaid revenue was 13.3% lower at RM686mil against RM791mil recorded in the second quarter of 2019.

Maxis declared a second interim dividend of four sen net per share for the quarter.

“The lower distribution will allow Maxis to continue supporting consumers, businesses and communities and preserve cash and ensuring protection of the core business in preparation for the opportunities from recovery of the economy.”

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Maxis , Gökhan Ogut , Covid-19 , digitalisation

   

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