Maxis chief executive officer Goh Seow Eng
KUALA LUMPUR: Maxis Bhd
released an improved set of results in the second quarter of its financial year (2QFY24) on the back of revenue growth in its consumer service and enterprise business segments.
In its results filing with Bursa Malaysia, the telco announced a net profit of RM356mil as compared to RM330mil in the year-ago quarter.
Maxis reported revenue of RM2.59bil in 2QFY24, up from RM2.47bil in 2QFY23, while earnings per share was higher at 4.6 sen against 4.2 sen previously.
The board of directors declared a dividend of four sen per share, going ex on Sept 4, 2024, and payable on Sept 23, 2024.
For the cumulative six months to June 30, 2024, Maxis posted a net profit of RM709mil, against RM650mil in 1HFY23 while revenue rose to RM5.19bil from RM5bil previously.
Maxis CEO Goh Seow Eng said the telco's strong performance demonstrates its readiness to take on a lead role in supporting Malaysia's digital ambitions through the rollout of a 5G-advanced network.
"Maxis remains fully committed to a swift implementation of the government's second 5G network and bring its economic benefits to the rakyat and businesses," he said in a statement.
According Maxis, its strategy in the consumer business was to broaden the price range of its postpaid plans to target all market segments, resulting in a 5.2% increase in postpaid revenue to RM916mil.
Prepaid revenue, meanwhile, was flat at RM648mil with a 2.3% growth in subscribers offset by a RM1.10 decrease in average revenue per user (Arpu) due to the competitive prepaid market.
Home connectivity revenue improved 9.6% to RM251mil, driven by 10.1% growth in home connection customers, while blended Arpu grew 1.8% to RM110.20.
The group's enterprise revenue rose 10.8% year-on-year to RM401mil, mainly owing to the arrangement for fixed connectivity services as well as the 2G and 4G wholesale services.
The higher revenue drove earnings before interest, taxation, depreciation and amortisation (Ebitda) higher by 4.4% to RM1.05bil over the same quarter in 2023.
Its operating free cash flow stood at RM1.02bil, due to strong working capital management with a healthy cash balance of RM727mil as at 2QFY24.
Moving forward, Maxis said it was guiding for a low single-digit growth in service revenue and marginal to low single-digit growth in Ebitda.
It also projected capex spending to remain under RM1bil, prior to any potential financial impact for 5G.
