KUALA LUMPUR (Nov 8): Maxis Bhd’s (KL:MAXIS) continuous efforts to recruit subscribers with lower prices are paying off.
The telecommunications company announced that its net profit grew by 28% for the three months ended Sept 30, 2024 (3QFY2024), helped by a larger subscriber base, coupled with a drop in staff costs after earlier lay-offs.
Quarterly net profit came in at RM366 million, compared with RM207 million a year ago, while revenue was up 5.5% to RM2.58 billion.
Maxis declared a third interim dividend of four sen per share, payable on Dec 23, bringing the total to 12 sen for the nine-month period ended Sept 30, 2024 (9MFY2024). The telco paid out 16 sen per share in FY2023.
For 9MFY2024, net profit expanded by 14.7% to RM1.08 billion from RM937 million a year earlier, while revenue increased by 4.4% to RM7.77 billion from RM7.44 billion.
Full-year guidance maintained
Maxis maintained its full-year guidance for a 'low' single-digit increase in service revenue, 'low' single-digit growth in earnings before interest, taxes, depreciation and amortisation (Ebitda), and for capital expenditure to remain under RM1 billion.
For 3QFY2024, service revenue increased by 3.2% year-on-year to RM2.2 billion. Service revenue from the consumer business was up 2.1% due to steady subscriber growth, while enterprise business rose 4.2%, thanks to the inception of 2G and 4G wholesale services.
The group reported Ebitda of RM1.05 billion, while its Ebitda margin increased to 47.4% from 47.2% previously. Maxis allocated RM140 million in capex during 3QFY2024.
For 9MFY2024, service revenue grew 3.9% to RM6.62 billion, while Ebitda increased to RM3.14 billion.
“We are on course for a strong close to the year. Our focus to provide the best connectivity experience, enabled by network excellence and disciplined execution in each segment, remains unchanged. This is in line with our steadfast commitment to addressing customer needs through first-rate products and services,” Maxis chief executive officer Goh Seow Eng said in a statement.
In response to the government's announcement selecting U Mobile to lead the second 5G network, Maxis said it will consider the available options after discussions with all stakeholders.
“We will continue to provide 5G services to customers through our existing access agreement with Digital Nasional Bhd," he said.