MAXIS Q2 NET PROFIT DROPS 16.4pc TO RM478m
KUALA LUMPUR: The decline in prepaid segment has dragged Maxis Bhd’s earnings for the second quarter (Q2) ended June 30.
Net profit shrunk 16.4 per cent to RM478 million from RM572 million recorded in the same quarter a year ago while group service revenue during the quarter dropped 3.7 per cent to RM3.99 billion,
Prepaid service revenue declined by 14.3 per cent to RM1.7 billion, mainly attributed to a lower subscription base which was impacted by the continued SIM (Subscriber Identity Module) consolidation, migration to postpaid and intense price competition.
Average revenue per user (Arpu) remained relatively high and stable at RM41 per month while revenue in Q2 eased 3.8 per cent to RM2.25 billion from RM2.34 billion, according to a filing to Bursa Malaysia today.
For the six months, Maxis’ net profit decreased 6.8 per cent to RM1 billion from RM1.07 billion, while revenue dropped 4.8 per cent to RM4.48 billion from RM4.71 billion.
Moving forward, the telecommunication services provider expects the market to remain competitive, but will continue to focus on maintaining its leadership position by leveraging strong 4G LTE network with its leading coverage and speed.
“In the postpaid market, we will focus on building upon our flagship MaxisONE Plan as we continue to innovate value accretive family-centric offerings and innovative device propositions.
“In the prepaid market, we will maintain our focus on high mobile Internet users and profitable segments, particularly in the foreign worker segment, while expanding our use of data analytics for segmental offerings to drive incremental Arpu,” it said.
Maxis said it maintained guidance for the financial year ending December 31 with service revenue and earnings to decline by mid-single digit and high singledigit, respectively, base capital expenditure to be around RM1 billion and free cash flow expected at a similar level to financial year 2017.
Maxis has declared a second interim single-tier tax-exempt dividend of five sen per ordinary share in respect of the financial year ending December 31, to be paid on September 27.