Cumulatively, for the first half of financial year 2025, Maxis’ net profit rose 8.5% to RM769mil.
PETALING JAYA: Amid elevated competition, Maxis Bhd
’s better cost management saw earnings for the second quarter (2Q25) rise by 11.8% year-on-year (y-o-y) and 7.3% quarter-on-quarter (q-o-q) to RM398mil.
Net profit margin also improved to 15.5% from 14.2% in 1Q25.
Traffic, device, commissions and other direct costs were reduced in the period. Marketing costs were also lower, the company stated in a release.
The improved profitability came despite topline slipping in quarter on lower contributions from service revenue and device sales.
The telecommunication giant, whose stock has fallen nearly 6% year-to-date, reported revenue in 2Q25 ended June 30 had dipped by 0.93% y-o-y to RM2.56bil.
On a sequential basis, the overall revenue saw a sharper decline of 1.8%, even as service revenue improved 1.5%.
Cumulatively, for the first half of financial year 2025, Maxis’ net profit rose 8.5% to RM769mil, while revenue was slightly lower at RM5.17bil against RM5.19bil in the year-ago period.
Elaborating on its 2Q25 service revenue of RM2.2bil, Maxis said it has slipped by 0.5% y-o-y due to the previously announced changes in commercial arrangements related to Maxis’ device protection programme.
The programme was first announced in the first quarter of this year, and is expected to affect y-o-y financial performance comparisons for the remainder of the year.
Under the Consumer Business segment, postpaid revenue rose 1.8% y-o-y to RM933mil as mobile subscriptions increased to 4.04 million.
However, average revenue per user (Arpu) declined to RM71.30 in 2Q25 as compared to RM74.40 in 2Q24.
Meanwhile, Maxis’ prepaid revenue fell 5.9% y-o-y to RM610mil in 2Q25, amid the drop in subscriptions to 5.77 million.
Prepaid Arpu also fell to RM35.30 as compared to 2Q24’s RM37.10.
That said, compared to the preceding first quarter, the Arpu has increased slightly from RM34.30. In total, Maxis’ total mobile subscriptions were recorded at 9.81 million as at end-June 2025.
The third segment under Consumer Business – consumer home – saw its service revenue growing by 1.2% to RM254mil, supported by a 1.4% rise in subscriptions to 788,000. Consumer home includes fibre broadband and home solar solutions.
According to the telecommunication giant, consumer home revenue growth was driven by the continued focus on delivering exceptional customer value and converged home offerings.
As for Maxis’ Enterprise Business, service revenue rose by 1.5% y-o-y to RM407mil, led by higher mobile subscriptions as well as fixed and solutions revenue growth.
Commenting on Maxis’ latest quarterly performance, chief executive officer Goh Seow Eng said: “Our second-quarter results demonstrate our continued resilience, driven by a disciplined focus on operational excellence.
“This includes driving greater efficiency and reliability through digitalisation and Al to enhance and automate processes, including network optimisation.
“We maintain our full-year guidance for low single-digit service revenue growth and flat to low single-digit earnings before interest, tax, depreciation and amortisation growth, and will continue to strategically invest in our network and offerings to enhance our integrated capabilities and meet evolving customer needs.”
Maxis said it recorded a capital expenditure (capex) of RM165mil in 2Q25, higher by 42.2% y-o-y.
This was achieved by prioritising investments in fibre infrastructure that enhance its integrated network capabilities and continued focus on targeted upgrades to its mobile network to meet capacity requirements.
Its operating free cash flow stood at RM929mil with a cash balance of RM688mil as of 2Q25, supported by effective working capital management.
The board of directors declared a second interim dividend of four sen per share, going ex on Sept 9, 2025, and payable on Sept 25, 2025.
Looking ahead, Maxis cautioned the telecommunications sector continues to see elevated competition.
“Maxis remains focused on enhancing customer value through innovative connectivity solutions and highly reliable connectivity across Maxis’ extensive nationwide network.”
The telecommunication giant also guided that its capex for the current financial year is expected to be in the region of RM1bil.
