Maxis closes FY2022 with steady growth across all segments
- Service Revenue at RM8,336 million, up 4.0%
- EBITDA up 1.6% to RM3,938 million
- Invested RM1.1 billion in Capex for the year
- Strong Operating Free Cash Flow at RM3,303 million for the year
- Declares interim dividend of 5 sen net per share for the quarter
Maxis closed the financial year ended 31 December 2022 with growth across its consumer and enterprise businesses, staying on track with its convergence strategy. In comparison to FY2021, the Company posted higher service revenue with a stable EBITDA and Operating Free Cash Flow. Profit After Tax eased due to the Prosperity Tax in 2022. Maxis declared an interim dividend of 5 sen net per share for the quarter, bringing the full year dividend to 20 sen per share.
Maxis recorded higher revenue in both mobile and home fibre connectivity. For home fibre, the Company achieved a commendable double-digit growth in revenue and homes connected for 14 consecutive quarters, making Maxis the second largest fibre retailer and strong challenger in the market. Including its own fibre build, the Company now has access to serve approximately 7 million premises.
In 2022, Maxis invested RM1.1 billion in capex, with a focus on upgrading and building new mobile sites for 4G expansion and to increase its fibre footprint to more homes and businesses. During the year, Maxis continued to prioritise customer experience in an increasingly digitalised environment. Its continuous efforts to improve self-serve digital channels contributed to the highest Touchpoint Net Promoter Score of +68 points for the quarter.
On 5G, Maxis looks forward to commercially launching 5G-related products and services soon. Meanwhile, the company continues to develop multi-industry 5G use cases with major players for commercial use through its growing 5G Alliance. It has also expanded its 5G international roaming services to more countries and already rolled out a range of 5G devices to its customers.
“We have been agile in adapting to the changing telco landscape. Our strengths in mobile, network, converged offerings and expanding fiber footprint put us in a firm position to forge ahead as Malaysia’s leading converged solutions provider. We have a lot to do this year as we expect an increasingly challenging and competitive environment going forward.” - Comment by Goh Seow Eng, Maxis CEO
FY2022 financial highlights – FY2022 vs FY2021
- Service Revenue increased to RM8,336 million, up 4.0%, a result of growth in all segments within the Consumer and Enterprise businesses.
- Consumer Business recorded a revenue of RM6,811 million, up 4.8%:
- Postpaid continued to see strong subscriber growth, up 6.5%, bringing the total number of postpaid subscriptions to 3.34 million. This contributed to RM3,275 million in revenue, up 6.9%.
- Prepaid recorded a slight dip of 2.9% in subscription, due to continued prepaid to postpaid migration. The segment remained resilient, with overall subscribers at a stable 5.79 million and delivering RM2,693 million in revenue.
- Home Connectivity delivered double digit revenue growth, contributing RM843 million, up 16.9%. While actively converting Wireless Broadband Customers to Fibre, there was overall growth of over 78k new connections due to the demand for converged services.
- Enterprise Business revenue was at RM1,525 million. Excluding wholesale voice, core revenue for the business was up 8.8%. The segment continues to show potential for revenue uplift in the future.
- EBITDA increased by 1.6% to RM3,938 million, driven by higher revenue.
- Profit after tax was at RM1,181 million, easing by 9.7% due to the Prosperity Tax charged during the year. (33% on chargeable income exceeding RM100 million)
- Capex was at RM1,114 million to deliver the best converged network performance and experience.
- Retained a strong Operating free cash flow of RM3,303 million.
Key highlights for Q4 2022
- Became the first telco to build a core network architecture in East Malaysia to improve customers’ Internet experience and cater to the high data volume.
- Enabled more customers to enjoy the best 5G experience with expansion of 5G international roaming service to 29 countries.
- Offered free one million World Cup Qatar 2022™ sooka live match passes for all its customers to redeem, including to stream for free any of the 64 matches live, as part of #SebolaSuara campaign.
- Launched Malaysia’s first Virtual Telco Store in Metaverse, Maxis Centre Decentraland, to provide an immersive glimpse into the future from multiple perspectives, including essential services and customer engagement.
- eKelas Usahawan, Maxis’ community programme, has attracted strong interest from micro-SMEs, in particular women entrepreneurs, in adopting digitalisation for their businesses. To date, over 2,500 entrepreneurs have been trained through physical workshops and webinars.