Maxis’ CNP for FY23 below analysts’ expectations
Maxis Bhd’s (Maxis) core net profit for the financial year 2023 (FY23) of RM1.23 billion was below analysts expectations and consensus at 94 per cent of full year consensus estimate.
The shortfall versus Kenanga Investment Bank Bhd’s (Kenanga Research) forecast was largely attributed to accelerated depreciation charges recognised in 4QFY23.
“Core net profit excludes exceptional items recognised in 4QFY23 that include tax settlement of RM73 million to the Inland Revenue Board for additional assessments; and write-off of RM161 million for certain telecommunication equipment and software that were no longer in use,” it said.
FY23 service revenue growth of 4.2 per cent y-o-y surpassed Maxis’ guidance (low-single digit growth) and was mainly driven by the postpaid segment.
Kenanga Research said this was on the back of subscriber base expansion of 7.6 per cent following the introduction of postpaid plans with lower entry price points (starting from RM30 per month).
“To a lesser extent, service revenues were also boosted by stronger segmental performances from enterprise, which was largely driven by 4-month contribution from provision of wholesale 4G MOCN, 4G and 2G domestic roaming services to TM.
“It was also boosted by consumer fiber whereby net adds were propelled by Maxis’ proposition of fixed-mobile convergence.”
AmInvestment Bank Bhd (AmInvestment Bank) noted that Maxis’ postpaid subscribers rose by eight per cent in FY23 thanks to offerings of attractive monthly postpaid plans of RM30 to RM199.
Also, its fixed-mobile convergence gained traction as consumer home fibre subscribers rose by 87,000, a rise of 15 per cent y-o-y.
“Maxis’ capex declined by 27 per cent to RM0.8 billion in FY23. This was largely due to selective expenditure on network capacity growth and fibre assets.
“Moving forward, Maxis is guiding for a low single-digit increase for service revenue, flat EBITDA and capex of less than RM1 billion for FY24.”