Maxis posts strong 1Q with net profit of RM353mil

KUALA LUMPUR: Maxis Bhd is guiding for a low single-digit increase in service revenue in 2024 while earnings before interest, tax, depreciation and amortisation (Ebitda) is expected to remain unchanged.

In comments accompanying its 1QFY24 results, the telco said capex spending for the year ending Dec 31, 2024, is also expected to remain less than RM1bil, discounting any potential financial impact for 5G.

During the quarter under review, Maxis reported a net profit of RM353mil, which was higher than RM320mil in the year-ago quarter, translating to an earnings per share of 4.5 sen against 4.1 sen. Ebitda expanded 7.4% y-o-y to RM1.04bil.

This was on the back of revenue of RM2.6bil, an improvement from RM2.53bil in 1QFY23.

The board of directors declared a first interim dividend of four sen per share to be paid on June 24, 2024, with entitlement date on June 5, 2024.

In a statement, Maxis said the strong quarter was owing to growth in its core businesses, underpinned by its integrated telco strategy.

It said the company’s focus on its core consumer and enterprise businesses delivered a 7.3% increase in service revenue year-on-year (y-o-y) to RM2.19bil.

The group’s consumer business recorded growth in both its mobile and home segments while the enterprise business sustained its momentum from rising demand for connectivity solutions in tandem with growing digital adoption.

Moving forward, Maxis said it will accelerate the adoption of next-generation enterprise offerings in the public and private sectors, including 5G and 5G-Advanced (5.5G) solutions.

“The company is also committed to being the one-stop digitalisation partner for small and medium enterprises (SME), in line with the nation’s aspiration to accelerate digital adoption,” it said.

During the quarter, Maxis invested RM106mil into network capacity expansion, fibre rollouts and IT digitalisation.

“Enhancing customer experience and delivering better value are our utmost priority.

“With our focused investments in our network and digitalisation, we are confident we will continue to meet the connectivity needs of our customers,” said Maxis CEO Goh Seow Eng.