Maxis posts higher service revenue, net profit in 2Q of 2021

Maxis CEO Gökhan Ogut: “We are committed to investing in Malaysia by driving greater digital adoption for businesses, expanding our network and building new capabilities and talent."

KUALA LUMPUR: Maxis Bhd reported higher service revenue in the second quarter ended June 30, 2021 while normalised earnings before interest, tax, depreciation and amortisation (Ebitda) and also profit after tax showed firm growth.

In a statement on Friday, Maxis said its service revenue rose 3.1% on-year to RM1.98bil while it reported strong normalised Ebitda growth of 6.1% to RM1.01bil from a year ago.

Profit after tax grew by 5.3% to RM360mil from RM342mil a year ago. Earnings per share were 4.6 sen compared with 4.4 sen a year ago. It declared a four sen net per share dividend.

Its revenue increased by 5.2% to RM2.26bil from RM2.15bil a year ago.

Maxis described the 2Q21 as another quarter of resilient performance on the back of its converged solutions strategy, while focusing on providing the best connectivity and support for communities in this challenging environment.

“For 2Q21, the company continued to see strength in its core mobile and home broadband businesses, driving solid service revenue as well as Ebitda and profit after tax (PAT) growth,” it said.

Highlights of Maxis 2Q21 results:

• Resilient service revenue at RM1.98bil with a healthy growth of 3.1% from the preceding year as converge strategy gains momentum and a higher contribution from fibre and postpaid businesses.

• Normalised EBITDA showed strong growth of 6.1% to RM1.01bil 1 due to higher revenue from Fibre and Mobile businesses.

• Strong profit after tax (PAT) with a 5.3% YoY increase to RM360mil.

• Healthy Postpaid revenue at RM1bil, a 2.2% increase since 2Q20 and a 7.0% YoY growth of subscriber base, mainly for Maxis Postpaid and Hotlink Postpaid subscriber base. Monthly average revenue per user (ARPU) was healthy at RM81 although lower from RM85 in 2Q, 20 due to the dilution effect from increased subscribers adopting Hotlink Postpaid.

• Stable prepaid revenue of RM685mil, easing 0.1% YoY as well as a 0.6% YoY decrease of subscribers. However, there is still consistent adoption of Hotlink Prepaid Unlimited despite a declining market, due to successful branding and omnichannel marketing which targets underserved markets be it B40, youth or foreign workers. Prepaid ARPU remained stable at RM38 for the quarter.

• Achieved critical size and scale for home connectivity with 654,000 fibre and wireless subscribers, a strong growth of 28.5% YoY.

• Fibre revenue increased by 23.5% to RM163 million with an 18.5% increase in connections YoY. This was backed by strong adoption of Maxis Unlimited Postpaid & Fibre and higher-end plans, resulting in ARPU remaining firm at RM109.

• Home 4G Broadband saw an increased ARPU to RM114 and subscribers increased by 70.4% particularly in non-fibre coverage areas, leveraging Maxis 4G/LTE superior network.

• Operating free cash flow (OFCF) at RM894 million mainly due to Universal Service Provision contribution payment.

• Maxis and Hotlink apps continue to see increased adoption with 61% of postpaid primary account holders on the Maxis App, while 75% of prepaid mobile customers are using the Hotlink App.

Maxis said in 2Q21, Maxis offered more innovative solutions for its customers, and saw solid growth in its Maxis Postpaid and Hotlink Postpaid subscriber base while keeping a strong prepaid to postpaid momentum with value-accretive Hotlink Postpaid take-up.

On the enterprise front, Maxis said it has been supporting businesses, particularly SMEs in digitalisation.

With more customers and businesses connecting to its network, Maxis’ capex for the quarter stood at RM180mil to support the data traffic growth, as well as investment in Fibre and Enterprise growth.

Maxis continued to fulfil its commitments to Jalinan Digital Negara (JENDELA), overachieving its first half 2021 targets while taking steps to increase its network capacity and upgrades to cater to the growing data consumption.

On a blended basis, Maxis’ customers used an average of 24.40GB a month, an increase of 15.8% year-on-year.

Maxis CEO Gökhan Ogut said the group continues to support the nation by providing the best connectivity for Malaysians in these difficult times.

“While we are pleased with the strong performance that we have achieved for the quarter, we will remain focused on ensuring that our customers – from individuals, homes, and businesses – have access to the best solutions and services.

“We are committed to investing in Malaysia by driving greater digital adoption for businesses, expanding our network and building new capabilities and talent,” he said.

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