Maxis optimistic after solid Q2 performance

PETALING JAYA: Maxis Bhd is confident of becoming the leading integrated telecommunications company in Malaysia, driven by the deliverance of its convergence strategy, while being hopeful that it will continue its strong track record of mobile and fibre converged services.

The group said it has expanded its market share leadership and will keep up with enhancing its product offerings of converged solutions to individuals, homes and businesses, coupled with delivering sustainable growth.

Maxis released its financial results for its second quarter ended June 30 (2Q23) yesterday, which saw net profit inching up by 2.5% year-on-year (y-o-y) to RM330mil, on the back of a 1.9% revenue growth y-o-y to RM2.47bil.

The company attributed the stable performance to expansion in its consumer and enterprise businesses, particularly in core mobile connectivity, as well as the discontinuation of the Prosperity Tax in 2023.

Comparing its year-to-date (y-t-d) performance to that of the same period in 2022, net earnings again rose 6.4% y-o-y to RM650mil.

This was supported by a 3.4% increase in turnover to RM5bil, which the group said was due to growth in its consumer and enterprise business segments, besides the aforementioned absence of the Prosperity Tax.

In a statement published yesterday in conjunction with its results release, Maxis said it continues to see encouraging growth across its consumer and enterprise businesses, as postpaid revenue rose, driven by higher subscriptions.

On top of that, its home connectivity segment also saw another quarter of double-digit growth at 10.7% y-o-y, with total connections having crossed 700,000, driving up revenue contribution from the division by 9.6% y-o-y to RM229mil.

At the same time, quarter-on-quarter (q-o-q) figures were similarly solid, with net profit rising by 3.1% from RM320mil for the three months ended March 31, despite revenue contracting marginally by 2.2% q-o-q from RM2.5bil.

The group declared an interim dividend of four sen for 2Q23, bringing its y-t-d dividend to eight sen for 2023.

Meanwhile, Maxis reported that it invested RM166mil in capital expenditure during the quarter in review, with a priority to maintain network quality and to better serve its customers.

The company is also looking forward to executing its Access Agreement with Digital Nasional Bhd for the purpose of offering 5G-related products and services to its customers, pending shareholders approval at an EGM on Aug 14.

Commenting on Maxis’ performance, chief executive Goh Seow Eng said the group is on the right track for stable growth in a competitive telco landscape.

“Our focus will always be on customer experience in terms of products, services, network and digitalisation. Very soon, we will offer 5G plans with attractive value for all segments,” he said.

Other highlights from the quarter included a revenue growth of 7.5% y-o-y to RM871mil from its postpaid segment, which also saw subscriptions growing 6.3% y-o-y to 3.4 million, with a stable average revenue per user of RM78.

The group has also entered into a strategic partnership with Telekom Malaysia Bhd to provide 4G Multi Operator Core Network as well as 4G and 2G Domestic Roaming Services to benefit subscribers in rural and urban areas nationwide.

Maxis has also partnered with Boustead Petroleum Marketing Sdn Bhd to be part of its wide scale digitalisation exercise to improve customer experience at the latter’s retail stations.