Maxis revenue gains momentum in 2Q

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“Our solid performance across all segments underlines our sharp focus on our strategy and agility, and we are well-positioned for continued growth in a rapidly changing and competitive telecom landscape. We are focused on continuously improving our converged network performance and leveraging our strong talent pool in striving to deliver the best innovation and services to our customers,” said CEO Gokhan Ogut.

KUALA LUMPUR: Announcing its financial results for the second quarter ended June 30, 2022 (2Q22), Maxis Bhd reported revenue growth in both its consumer and enterprise businesses, which affirms the positive impact of its convergence strategy.

“Our solid performance across all segments underlines our sharp focus on our strategy and agility, and we are well-positioned for continued growth in a rapidly changing and competitive telecom landscape.

“We are focused on continuously improving our converged network performance and leveraging our strong talent pool in striving to deliver the best innovation and services to our customers,” said CEO Gokhan Ogut in a statement.

In the second quarter ended June 30, 2022, Maxis posted an improved revenue of RM2.42bil over the same quarter last year.

Net profit, however, was 9.5% lower year-on-year (y-o-y) at RM329mil due to higher depreciation and amortisation costs from the revision of spectrum rights’ useful life as well as a one-off increase in the corporate tax rate to 33% due to the prosperity tax.

The quarterly performance translated to an earnings per share of 4.2 sen compared to 4.6 sen in 2Q21.

Year-to-date, Maxis’ net profit comes to RM627mil on the back of RM4.83bil revenue, compared to RM694mil and RM4.5bil in the same period last year.

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On the back of the 2Q result, the board of directors declared a second interim dividend of five sen per share with entitlement date on Aug 30, 2022, payable on Sept 30, 2022.

Over the quarter under review, service revenue grew 4.3% to RM2.08bil with 4.4% and 4% growth in the consumer and enterprise segments respectively.

“The enterprise business continued its upward momentum, delivering RM386mil in revenue, leveraging its strength in mobile, while its growing fixed and solutions segment yielded favourable results with a growth of 6.9%.

“With Enterprise Business Registration Numbers up 4% y-o-y, it provided Maxis the opportunity for future revenue uplift,” said Ogut.

He added that continued uptake in the consumer segment also led to growing subscriber and revenue numbers.

“Subscribers for the postpaid segment (Maxis Postpaid and Hotlink Postpaid) continued to increase, recording a healthy 7.5% growth, bringing the total number of postpaid subscriptions to 3.2 million.

“With borders reopening leading to the influx of tourists and foreign workers, the prepaid segment was resilient with Hotlink Prepaid Unlimited and Hotlink Prepaid Pantas offerings proving to be popular.