Maxis records 1Q net profit of RM334mil, declares 4 sen/share div

KUALA LUMPUR: Maxis Bhd's net profit in the first quarter ended March 31, 2021, was RM334mil, 6.4% lower than RM357mil in the previous corresponding quarter due to higher depreciation in IT investments.

Group revenue was down 4.8% to RM2.23bil from RM2.34bil in the year-ago quarter.

The board of directors declared an interim dividend of four sen per share for the quarter.

"For the quarter, Maxis saw subscriber growth across all segments Postpaid, Prepaid, Fibre and Fixed Wireless Broadband and Enterprise solutions as the Company responds to market needs with value-attractive plans such as Maxis Postpaid, Hotlink Postpaid and Hotlink Prepaid Unlimited.

"Notably, there has been significant growth in revenue for fixed broadband services, both fibre and wireless broadband on the back of strong adoption of Maxis Postpaid Prime converged packages and Maxis' leading 4G network," it said in a statement.

In 1Q 2021, service revenue remained resilient at RM1.96bil, which was a 0.5% decrease year-on-year (y-o-y), due to subscriber growth in the postpaid, prepaid and fibre segments.

Normalised Ebitda rose 0.5% to RM964mil while normalised Ebitda margin on service revenue grew to 49.2%.

Postpaid revenue was 1.4% lower y-o-y at RM974mil with average revenue per user (Arpu) down to RM82 versus RM86 in 1Q 2020 due to the absence of international roaming revenue and dilution from the uptake of Hotlink Postpaid entry level plans.

Prepaid subscription grew 3.4% to 6.08 million customers and recorded an Arpu of RM38 due to the strong adoption of Hotlink Prepaid Unlimited as well as new Hotlink branding and omnichannel marketing in underserved areas.

On a blended basis, Maxis data usage trended higher with customers using an average of 21.58GB a month, a 28.4% y-o-y increase.

According to Maxis, capex investments for the quarter went towards network capacity as well as mobilisation of enterprise business growth and opportunities.

In addition, the telco has further expanded its broadband access connectivity through wider deployment to underserved areas and is on track to meet its Jendela targets, it said.

"For businesses, our journey into converged services and Enterprise solutions in the last two years has given us a strong first-mover advantage in the industry.

"Together with our differentiated network, product innovation and committed people, we will continue to serve individuals, home and businesses and help them thrive in this new norm of accelerated digitalisation," said Maxis CEO Gokhan Ogut.
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Maxis , Gokhan Ogut , postpaid , prepaid , mobile , broadband


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