KUALA LUMPUR (May 19): Maxis Bhd reported a net profit of RM320 million for the first quarter ended March 31, 2023 (1QFY2023), up 7.38% from RM298 million a year ago, amid higher earnings before interest and taxes (Ebit) as well as discontinuation of prosperity tax (Cukai Makmur).

As such, earnings per share increased to 4.1 sen from 3.8 sen, its Bursa Malaysia filing on Friday (May 19) showed.

Maxis declared a first interim dividend of four sen per share, to be paid on June 28.

Revenue for the quarter rose 4.99% to RM2.53 billion from RM2.41 billion. This is due to higher service revenue of RM2.11 billion, from RM2.03 billion in 1QFY2022, fuelled by strong growth from both consumer and enterprise businesses.

Ebit increased to RM541 million from RM523 million driven by higher service revenue and stable recurring resource costs. Meanwhile, profit before tax decreased to RM429 million from RM432 million in 1QFY2022 on higher finance costs on supplier financing and borrowings.

Looking ahead, Maxis said it is committed to working closely with the industry to accelerate 5G for the nation and fully leverage its resources, skills and infrastructure to build a 5G network of the highest quality and reliability.

“Maxis looks forward to providing 5G-related products and services to its customers soon, with a focus on affordability and adoption,” it added.

This followed the government’s announcement earlier this month to focus on achieving 80% 5G coverage of populated areas under Digital Nasional Bhd by the end of this year, as well as the implementation of 5G under two networks (Phase 2).

At Friday’s noon break, Maxis settled up four sen or 0.92% to RM4.38, giving it a market capitalisation of RM34.3 billion. The counter has risen 16.8% year-to-date.