Maxis closes a strong year
KUALA LUMPUR: Maxis closed a strong 2017 with with the highest profit after tax (PAT) in four years and highest earnings before interest, tax, depreciation and amortisation (EBITDA) in five years.
For the full year 2017, Maxis Bhd’s (Maxis) normalised EBITDA grew by 2.1 per cent year on year y-o-y to RM4.597 billion from RM4.502 billion the previous year, reflecting higher revenue and positive results from cost optimisation initiatives. EBITDA margin (on service revenue) was strong at 53.9 per cent against 53.2 per cent last year.
Meanwhile, normalised PAT rose 5.5 per cent to RM2.086 billion compared to RM1.977 billion on the back of higher EBITDA. The group’s service revenue continued to grow positively in a declining market, up 0.8 per cent to RM8.525 billion from RM8.455 billion a year ago, supported by strong growth in postpaid and integrated services.
The postpaid segment delivered y-o-y growth of 4.2 per cent with revenue of RM4.117 billion compared to RM3.951 billion last year.
This was mainly driven by growth in subscription base, with high and stable average revenue per user (ARPU). The group’s flagship MaxisONE Plan has now surpassed two million subscribers, contributing a high monthly ARPU of RM117.
As for prepaid revenue, it declined by 3.7 per cent to RM3.849 billion against RM3.997 billion a year ago due to lower subscription base. This was a result of aggressive price competition, prepaidto-postpaid migration and SIM consolidation in the market.
Maxis continued to focus on retaining and growing our quality subscribers, in particular high mobile Internet users. Hotlink FAST subscriptions grew to more than two million with sustained high and stable ARPU of RM43 per month.
Maxis also declared a fourth interim dividend of five sen net per share, bringing the full year dividend of 20 sen net per share for the year. For the fourth quarter of 2017 (4Q17), Maxis’ service revenue declined 2.1 per cent to RM2.119 billion from RM2.165 billion in 4Q16, mainly attributed to a lower prepaid revenue.
“Normalised EBITDA was lower at RM1.169 billion against RM1.187 billion. This was due to lower total revenue, a one-off operation and maintenance cost and higher realised foreign exchange losses in 4Q17
“Normalised PAT declined 2.0 per cent to RM537 million as compared to RM548 million due to lower EBITDA,” the group said.
Maxis’ blended data consumption almost doubled to 7.4GB from 4.1GB per month y-o-y. This was supported by the increase in smart-phone penetration which stood at 81 per cent from 76 per cent a year ago.
Maxis’s 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, the group invested RM1 billion in 2017.
MaxisONE Prime, a first convergence offering in Malaysia, an allin-one family plan comes with endless data with high speed connection for the entire family, mobile and home, supported by “ultrafast” and “never down” home fibre and the group’s 4G LTE network. Customers can also choose from a wide range of devices for the home or mobile on Zerolution, with zero upfront payment and interest.
Supporting Malaysian businesses, Maxis has been developing smart solutions to amplify the power of the Internet in enabling new ways of working for its corporate and small and medium enterprise (SME) customers, such as Maxis ONEBusiness.
On the prepaid front, Maxis empowered customers to choose what is important to them, being it the best streaming options, social passes or free calls, with a very attractive Hotlink RED offering.
“2017 was a strong year with many proud highlights. We gained further market share both in revenue and profits. We developed our superior 4G LTE network to be unparalleled in quality as the best and fastest data network in the country,” chief executive officer Morten Lundal commented.
“Overall, our customers enjoy a combination of lots of quality data, attractive products and great connectivity.
“We are most of all proud to record the highest customer satisfaction we have ever seen. We are on track towards our ambition for full digitalisation of Maxis. All in all, a strong finish to a great year.”