Home / Business / Maxis report 3Q revenue at RM2.26b, net profit RM325m

Maxis report 3Q revenue at RM2.26b, net profit RM325m

KUALA LUMPUR: Maxis Bhd reported higher revenue of RM2.26bil in the third quarter ended Sept 30, 2021, as its service revenue rose by 2.9% on-year to RM2.025bil.

In its statement on Friday, it said normalised earnings before interest, tax, depreciation and amortisation increased by by 1.7% to RM984mil on-year.

“Strong operating free cash flow, up by 37% on-year to RM1.067bil,” it said as it declared a four sen net per share dividend for the quarter.

Elaborating on the results, it said the higher service was driven by strength in core mobile business, delivering growth across postpaid and fibre businesses and registering a resilient Prepaid performance.

As for normalised Ebitda, which grew by 1.7% YoY, it was underpinned by strong convergence strategy and continued focus on cost savings.

However, its profit after tax (PAT) came in lower at RM325mil, attributable to additional investments in network and core capabilities which resulted in higher depreciation and amortisation costs. This compared with RM364mil a year ago.

Maxis said its strong postpaid revenue recorded growth of 7.2% YoY to RM1.03bil due to increase in both Maxis and Hotlink postpaid subscriber base on the back of higher demand for Maxis’ network and services. ARPU was healthy at RM81 per month.

Despite an ongoing Prepaid to Postpaid subscriber migration, the segment saw resilient adoption of the attractive Hotlink Prepaid Unlimited package, maintaining a stable average revenue per user (ARPU)at RM39 per month. Revenue for the quarter eased 4.5% to RM685mil.

Total fibre and wireless broadband subscriber base rose 32.8% YoY as demands for work, study and entertainment activities at home continued to increase.

Maxis said total broadband subscribers was at 709,000 at the end of the quarter, with wireless broadband subscribers up by 79.1% YoY to 197,000.

Double-digit growth was recorded in the fibre segment, with a 21.7% YoY increase in revenue and 25k new connections for the quarter, on the back of higher adoption in Maxis unlimited postpaid & fibre converged packages and higher speed plans.

Maxis recorded solid operating free cash flow (OFCF) at RM1.067bil, up by 37.0% YoY, mainly attributed to lower USP payments made in 3Q2021 as compared to 3Q2020, as well as the productivity and working capital programmes improving efficiency.

Maxis CEO Gökhan Ogut said the group was pleased to deliver another set of strong results and to continue its steady growth trajectory.

“Importantly, we will continue supporting all communities in Malaysia with greater access to devices, digital adoption for students and entrepreneurs as well as ongoing frontliner support and humanitarian efforts.

“All our initiatives during the quarter are driven by our brand purpose and our commitment to investing in the nation today and networks for growth tomorrow, so that the nation can always be ahead.”

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