KUALA LUMPUR (Aug 21): Maxis Bhd (KL:MAXIS), Malaysia’s second-largest mobile network operator by subscribers, posted a 7.88% rise in its second-quarter net profit thanks to higher consumer service revenue and the enterprise business.
Net profit for the three months ended June 30, 2024 (2QFY2024) was RM356 million, compared with RM330 million a year earlier, as revenue rose 4.7% to RM2.59 billion from RM2.47 billion.
The telecommunication company, controlled by billionaire T Anand Krishan, declared a second interim single-tier tax exempt dividend of four sen per share, to be paid on Sept 23.
Looking ahead, Maxis said it is keeping to its financial targets and current strategy to grow mobile, fibre, and enterprise businesses.
“Our strong performance demonstrates our readiness to take on a lead role in supporting Malaysia’s digital ambitions through the roll-out of a 5G-Advanced network,” said its chief executive officer Goh Seow Eng in a statement.
Service revenue, which excludes sales of devices, grew 4.9% to RM2.22 billion from RM2.11 billion. Service revenue at its consumer business was up 3.7% while that of its enterprise business rose 10.8%.
Postpaid revenue saw a 5.2% increase, though average revenue per user dropped RM3.50. Revenue from prepaid dropped 0.5% while average revenue per user fell RM1.10. Meanwhile, home connectivity revenue climbed by 9.6%.
Enterprise revenue grew 10.8% mainly from the arrangement for fixed connectivity services as well as 2G and 4G wholesale services.
The company also reaffirmed its FY2024 guidance, projecting low single-digit growth in service revenue, marginal to low single-digit growth in earnings before interest, taxes, depreciation and amortisation (Ebitda).
Maxis is also planning to keep capital expenditure under RM1 billion, before any potential impact from 5G.
For the cumulative six months ended June 30 (6MFY2024), Maxis’ net profit rose 9.08% to RM709 million from RM650 million a year earlier, while revenue increased by 3.86% to RM5.19 billion from RM5 billion.
Service revenue for January-June of 2024 came in at RM4.41 billion, an increase of 4.3% from the same period in 2023, while Ebitda rose 5.9% to RM2.09 billion, and capital expenditure totalled RM222 million so far this year.
Shares of Maxis slipped one sen to close at RM3.53, giving it a market capitalisation of RM27.65 billion following the results announcement.