Maxis Q2 Net Profit Up 9% to RM483 Million

 

Highlights:

Year-on-Year (YoY) – Q2 2016 vs Q2 2015:

  • Service revenue dropped slightly to RM2,055 million against RM2,089 million in the same period last year
  • Stable postpaid revenue at RM975 million against RM972 million, supported by over 1.3 million MaxisONE plan subscriptions
  • Prepaid revenue 5.2% lower at RM959 million against RM1,012 million in Q2 last year. Towards end of Q2, prepaid acquisition momentum is improving with the introduction of Hotlink FAST
  • Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) declined marginally to RM1,050 million from RM1,101 million
  • Profit After Tax (PAT) up 9.0% to RM483 million from RM443 million in the same period last year
  • Declared a second interim dividend of five sen net per share

 

Year-on-Year (YoY) - H1 2016 vs H1 2015:

  • Service revenue at RM4,177 million against RM4,211 million a year ago
  • EBITDA improved 5.4% to RM2,263 million from RM2,148 million
  • PAT up 17.3% to RM1,003 million from RM855 million

 

Steady Financials in Q2:

  Q2 2015 (RM'm)
Q2 2016 (RM'm)
Change (%) H1 2015 (RM'm)
H1 2016 (RM'm)
Change (%)
Service Revenue 2,089 2,055 (1.6) 4,211 4,177 0.8
EBITDA 1,101 1,050 (4.6) 2,148 2,263 5.4
PAT 443 483 9.0 855 1,003 17.3
Capex 218 333   353 492  

 

Intensified efforts in giving unmatched customer experience:

  • Upgraded over a million customers overnight with up to 5x more data and introduced more ways to use the data
  • Along with lots more data, introduced MaxisONE Share with new shareable DataPool that allows MaxisONE customers to share data with anyone and across all their other phones and tablets – locally and even overseas
  • The Hotlink FAST prepaid plan now gives customers free 2GB of 4G Internet every weekend for life. That’s 8GB/month of non-stop weekend streaming, surfing and sharing
  • The widest 4G LTE coverage in the country, covering 80% of the population and supported by more than 13,000 km fibre
  • Surpassed 1 million MaxisONE Plan subscriptions in April, recording 1.3 million subscriptions in June

 

Comment by Morten Lundal, Chief Executive Officer, Maxis Berhad:

“This wasn’t our easiest quarter, where competition tried to improve subscriber market share by lowering prices. After some initial market turbulence, we saw at the closing of the quarter our results improve and we managed to keep our revenue and profit at similar levels compared to last year.

We witnessed a data explosion in the last three to five months. People are using data and video much more than before, and just in the last 3 months, average mobile internet usage has grown from 1.7GB to 2.5GB, which is tremendous. For Maxis, it has always been about enabling our customers to enjoy their digital experiences in a completely worry-free way. In April, we upgraded over a million customers with a lot more data. That was the largest auto-upgrade we’ve ever done at Maxis and largest ever in Malaysia. For our Internet hungry prepaid customers, we offered a very attractive proposition in Hotlink FAST that gives customers Free 2GB of 4G Internet every weekend for life.

But it’s not just about giving more data - what’s important is to have your large data allowance on a quality network. Maxis invested over RM1.3 billion last year, and we’re going to invest the same amount this year, which is substantially more than other industry players. We are particularly proud of our industry leading LTE network, which has reached 80% of the population, covering more than 220 cities and towns.

We are also progressing well in our ambition to be a fully digitalised Maxis where most of our interactions with our customers are digital, we move from products to solutions and we are fully digitalised in the way we operate as a company.”

To view Maxis’ Q2 2016 financial results video release, please click here: https://youtu.be/Jq07JDYxfC8

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