BUSINESS

Maxis Q3 net profit eases to RM315 mln, but growth continues in all segments

04/11/2022 03:59 PM

KUALA LUMPUR, Nov 4 (Bernama) -- Maxis Bhd’s net profit for the third quarter ended Sept 30, 2022  (Q3 2022) eased slightly to RM315 million from RM325 million in the same quarter a year ago, mainly due to a one-off prosperity tax.

However, the telecommunication company’s revenue expanded 5.9 per cent to RM2.41 billion from RM2.27 billion in Q3 2021.

Maxis told the stock exchange that it continued to deliver growth across all segments driven by the performance of its consumer and enterprise businesses.

 Hence, it declared an interim dividend of five sen net per share for the third quarter.

The company said that its service revenue increased by 3.7 per cent to RM2.11 billion as a result of healthy growth in both consumer and enterprise businesses.

Consumer business recorded a revenue of RM1.72 billion, up by 4.1 per cent, owing to steady subscriber growth of 6.4 per cent in the postpaid segment.

This brought the total number of postpaid subscriptions to 3.27 million, contributing to a 6 per cent increase in revenue amounting to RM830 million.

The prepaid segment remained resilient, despite continued pre-to-postpaid migration, recording a slight drop of 1.8 per cent in subscriptions, it said.

Its home connectivity segment saw double-digit revenue growth of 16.2 per cent, with 83,000 additional home connections year-on-year (y-o-y), bringing total home fibre connections to 652,000, the company said.

Maxis said its enterprise business recorded a revenue increase to RM387 million, or up 1.8 per cent, due to a focus on expanding its convergence capabilities.

The increase in business registration numbers (BRNs) by 5 per cent offered the potential for future revenue uplift.

The group’s earnings before interest, taxes, depreciation and amortisation (EBITDA) were solid, increasing by 3 per cent to RM1.01 billion as a result of continued cost management initiatives.

However, the company noted that its net profit was 3.1 per cent lower despite the solid EBITDA and higher y-o-y profit before tax, due to the one-off prosperity tax for the year of 33 per cent on chargeable income exceeding RM100 million.

Chief executive officer Gokhan Ogut said Maxis registered another strong performance in the third quarter, underlining its stability in building the foundation for further growth.

“Our focus will always be on our customers and ensuring that we continue to improve and provide the best experience through our network, digital solutions, and services.

“We look forward to bringing soon the best of 5G services to our customers who can now sign up for exciting 5G device offers which were launched today," he said in a separate statement.

Maxis said its 5G alliance, formed in June, is on strong momentum, expanding now to 23 members, and is working with global and local partners to create and commercialise 5G use as well as Internet of Things (loT) solutions across industries in Malaysia and the Asia-Pacific.

The company also recently launched its sustainability strategy, MAX+, which amplifies its corporate strategy to build a more sustainable future through environmental, social and governance (ESG) practices.

-- BERNAMA


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