Maxis to maintain its service revenue


Maxis has embarked on a three-year cost optimisation exercise to remain competitive in the long run against an evolving landscape of the telecommunications industry.

PETALING JAYA: Maxis Bhd should be able to maintain service revenue resilience going forward, supported by its convergence strategy, particularly with the ongoing focus on mobile and fibre/wireless bundles.

Its capital expenditure (capex) is being toned down for financial year 2023 (FY23) to be slightly less than RM1bil versus FY22’s RM1.1bil.

Its nine-month capex is RM684mil, which is lower by 25.3% year-on-year (y-o-y) with prudence attributed to stabilised network capacity requirements and 5G developments, said TA Research.

Maxis has embarked on a three-year cost optimisation exercise to remain competitive in the long run against an evolving landscape of the telecommunications industry.

For a start, the group has kicked off with the right sizing of manpower, with headcount reduced by about 10%, TA Research noted.

Going forward, the group planned to leverage automation and digitalisation to extract efficiencies across the organisation, it added.

MIDF Research said with the right sizing exercise there should be continued elevated staff costs in the medium term.

Maxis reported third quarter (3Q23) earnings which came in at RM330mil, a decline of 7% y-o-y.

MIDF Research said the 3Q23 dividend remained conservative at four sen per share. This represented the third consecutive quarter where dividends fell below five sen as seen in FY22.

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