Maxis reports healthy Q2 results, declares 4 sen dividend

PETALING JAYA: Maxis delivered healthy financial performance for the second quarter ended June 30, 2023 (Q2’23) with service revenue (excluding wholesale voice) increasing 3.2% year-on-year (y-o-y) and earnings maintained amid a challenging operating environment, with higher profit after tax at RM329 million.

The company declared an interim dividend of 4 sen net per share for the quarter.

Postpaid revenue increased, driven by higher subscriptions. Home connectivity saw another quarter of double-digit growth, with total connections crossing the 700,000 mark.

Meanwhile, Maxis’ enterprise business continued its upward momentum, delivering a revenue growth of 3.4% y-o-y.

During the quarter, Maxis invested RM166 million in capital expenditure with a priority to maintain network quality and to better serve its customers.

Maxis CEO Goh Seow Eng (pic) said, “We are on the right track for stable growth in a competitive telco landscape. Our focus will always be on customer experience in terms of products, services, network and digitalisation. Very soon, we will offer 5G plans with attractive value for all segments.”

Detailing the financial highlights of Q2’23 compared with Q2’22, the company said service revenue (excluding wholesale voice) was at RM2,113 million, up 3.2% driven by healthy growth from both consumer and enterprise businesses; postpaid delivered strong revenue growth of 7.5% to RM871 million, driven by higher subscriptions of Maxis Postpaid and Hotlink Postpaid as well as effective pre-to-post migration strategy. Postpaid subscriptions grew 6.3% to 3.4 million, with a stable ARPU at RM78.

Prepaid revenue contracted 4.1% to RM651 million. However, continued adoption of Hotlink Prepaid plans helped sustain a healthy subscriber base at 5.7 million and stable ARPU at RM38 amid an intensely competitive prepaid market, Home connectivity registered double digit customer growth of 10.7% bringing the total home connections to 706,000, fuelling a 9.6% increase in revenue to RM229 million.

Enterprise revenue (excluding wholesale voice) was up 3.4% to RM362 million.

Ebitda was lower by 1% at RM1,002 million due to the impact of higher amortisation costs from the spectrum awarded in 2022 and profit after tax was up 2.2% at RM329 million.

Operating free cash flow stood at RM950 million with a healthy cash balance of RM515 million as at Q2’23.