Maxis delivers steady financials in 1Q18
KUCHING: Maxis delivered steady financials in the first quarter of 2018 1Q18), with profit after tax (PAT) coming in at RM510 million year- on-year (y- o-y).
Maxis’ normalised PAT stable at RM510 million on the back of solid earnings before interest, tax, depreciation and amortisation ( EBITDA).
Normalised EBITDA continued to be stable at RM1.02 billion slightly lower from RM1.024 billion a year ago while EBITDA margin (on service revenue) was high at 51.5 per cent against 49.3 per cent last year, reflecting positive results from cost optimisation initiatives.
“We delivered a steady quarter with solid EBITDA and high EBITDA margin in a highly competitive market. Our focus remains on providing attractive products, great connectivity and worry-free experience to our customers.
“This will only get better as we progress with our ambition to be fully digital,” said Maxis chief executive officer Robert Nason in a statement yesterday.
Maxis’ service revenue was marginally lower at RM1.98 billion from RM2.076 billion a year ago due to intense competition, particularly in the prepaid market.
Postpaid revenue grew 5.2 per cent y- o-y to RM985 million from RM936 million last year, registering the highest shared line acquisition and increased average revenue per account (ARPA) through mobile and fixed offerings.
This was supported by high monthly postpaid ARPU of RM92 and our flagship MaxisONE Plan ( MOP) which continued to attract high-value subscribers. MOP registered 283,000 new additions y- oy, bringing the total base to two million customers.
Prepaid revenue softened to RM849 million from RM1.006 billion last year due to lower subscription base. This was driven by aggressive price competition, continued SIM consolidation and migration to postpaid.
Maxis continued to sustain high Mobile Internet ( MI) penetration of 73 per cent, which supported the group’s high prepaid ARPU of RM41 per month.
The group declared a first interim dividend of five sen per share.
Blended data consumption almost doubled to 7.7GB from 4.3GB per month a year ago. This was supported by the increase in smartphone penetration which stood at 82 per cent from 78 per cent a year ago.
Maxis’ number one 4G LTE network is the widest in the country with 92 per cent population coverage.
To ensure its customers continue to enjoy the best mobile streaming experience, Maxis invested RM107 million for capital expenditure (capex) in 1Q.
Supporting Malaysian businesses to go digital, Maxis has been developing smart solutions to amplify the power of the Internet in enabling new ways of working for its corporate and SME customers.
Maxis’ Internet of Things ( IoT) offerings include mDrive, a fleet tracking solution which enables businesses to reduce cost and promotes safer driving habits within the fleet management of a company.
Encouraging traction for Hotlink’s new flagship products include Hotlink RED which enables customers to have the freedom to experience the Internet the way they like it, without having to worry about time or usage restrictions.
Additionally, there is Hotlink Postpaid Flex, a first- of-its-kind postpaid plan in the market that offers customers the best of both prepaid and postpaid in one plan, giving customers control and convenience on how they experience the Internet.