Maxis records strong 3Q from strong demand

KUALA LUMPUR: Maxis Bhd (Maxis) recorded a robust third quarter of 2017 (3Q17) by recording its highest quarterly earnings before interest, tax, depreciation, and amortisation (EBITDA) and profit after tax (PAT) in five years at RM1.20 billion.

Maxis said its normalised EBITDA grew by five per cent yearon-year (y-o-y) to RM1.20 billion from RM1.14 billion, reflecting higher revenue and positive results from cost optimisation initiatives. Its EBITDA margin (on service revenue) was also strong at 55.8 per cent against 54.1 per cent last year.

It also noted that its normalised PAT increased 8.3 per cent to RM562 million compared to RM519 million, on the back of higher EBITDA.

As for its service revenue, Maxis reported that its revenue grew two per cent this quarter to RM2.15 billion as compared with RM2.11 billion a year ago, supported by strong growth in its postpaid segment.

On that note, it pointed out that its postpaid segment grew 9.3 per cent y-o-y in revenue, driven by its two million MaxisONE plan customers who contributed a stable and high average revenue per user (ARPU) of RM117 per month.

Its Hotlink FAST subscription also grew more than two million. However, it pointed out that intense price-focused competition and lower revenue generating subscription base due to SIM consolidation resulted in prepaid revenue declining six per cent yo-y to RM955 million from RM1.01 billion a year ago.

“3Q17 was a very strong quarter for Maxis, delivering the highest quarterly profits in five years. Record high demand for data and our high quality network created an all-time high customer satisfaction score,” said Maxis’ chief executive officer Morten Lundal.

“We have invested RM647 million up to 3Q this year to ensure our customers continue to enjoy the best mobile streaming experience. Our industry leading 4G LTE network now covers 89 per cent of the population,” it added.

Maxis also highlighted that it has brought MaxisONE Home Fibre to Sabah and Sarawak this quarter, offering Internet speeds of up to 100Mbps, unlimited data, voice calls, and professional wi-fi setup.

“We also extended our range of ONEBusiness solutions for Sarawak and Sabah businesses with the launch of Zero Downtime Business Fibre Internet. Customers can enjoy speeds of up to 100Mbps at the office, with a wireless Internet backup.

“This complements the variety of connectivity, payments, marketing, and productivity business tools that we currently offer,” it said.