Maxis sees Q1 2018 earnings rise 4.2% to RM523mil

By Digital News Asia April 19, 2018

Revenue fell 5.8% to RM2.237 billion from RM2.375 billion
Postpaid revenue grew 5.2% on-year to RM985 million; prepaid revenue softened to RM849 million

Maxis sees Q1 2018 earnings rise 4.2% to RM523mil

MAXIS Bhd saw its earnings rise 4.2% to RM523 million in the first quarter ended March 31, 2018 from RM502 million a year ago. The telco declared an interim dividend of five sen a share.

Maxis said in a statement on April 19 that its normalised profit after tax was stable at RM510 million on the back of solid earnings before interest, tax, depreciation and amortisation (Ebitda).

According to the statement, normalised Ebitda continued to be stable at RM1.02 billion, slightly lower from RM1.024 billion a year ago. Ebitda margin (on service revenue) was high at 51.5% against 49.3% last year, reflecting positive results from cost optimisation initiatives.

Revenue, however, fell 5.8% to RM2.237 billion from RM2.375 billion. Earnings per share were unchanged at 6.7 sen.

Service revenue marginally was lower at RM1.98 billion from RM2.076 billion a year ago due to intense competition, particularly in the prepaid market.

The telco’s postpaid revenue grew 5.2% on-year to RM985 million from RM936 million last year, registering the highest shared line acquisition and increased average revenue per account (ARPA) through mobile and fixed offerings.

This was supported by high monthly postpaid average revenue per user (ARPU) of RM92 and its flagship MaxisONE Plan (MOP) which continued to attract high-value subscribers. MOP registered 283,000 new additions on-year, bringing the total base to two million customers.

Maxis’ prepaid revenue softened to RM849 million from RM1.006 billion last year due to a lower subscription base. This was driven by aggressive price competition, continued SIM consolidation and the migration to postpaid.

“We continued to sustain high mobile internet penetration of 73%, which supported our high prepaid ARPU of RM41 per month,” it said.

Blended data consumption almost doubled to 7.7GB from 4.3GB per month a year ago. This was supported by the increase in smartphone penetration which stood at 82% from 78% a year ago.

Maxis invested RM107 million for capex in Q1. The telco has developing smart solutions to amplify the power of the Internet in enabling new ways of working for corporate and SME customers.

Maxis’ Internet of Things (IoT) offerings include mDrive, a fleet tracking solution which enables businesses to reduce cost and promotes safer driving habits within the fleet management of a company.

It also saw ecouraging traction for Hotlink’s new flagship products. Hotlink RED enables customers to have the freedom to experience the Internet the way they like it, without having to worry about time or usage restrictions.

Hotlink Postpaid Flex offers customers the best of both prepaid and postpaid in one plan, giving customers control and convenience on how they experience the Internet.

Maxis chief executive officer Robert Nason (pic) said: “We delivered a steady quarter with solid Ebitda and high Ebitda margin in a highly competitive market.

“Our focus remains on providing attractive products, great connectivity and worry-free experience to our customers. This will only get better as we progress with our ambition to be fully digital.”