Maxis records high growth across all segments in Q2
SHAH ALAM - Maxis Berhad (Maxis) records a strong Q2 2022 growth in both its consumer and enterprise businesses which shows the positive impact of its convergence strategy.
Its Chief Executive Officer Gökhan Ogut in a statement said the solid performance showed that Maxis was well-prepared for further growth in a fast-growing telco market.
“Our solid performance across all segments underlines our sharp focus on our strategy and agility, and we are well-positioned for continued growth in a rapidly changing and competitive telco landscape.
"We are focused on continuously improving our converged network performance and leveraging our strong talent pool in striving to deliver the best innovation and services to our customers,” he said.
Maxis declared an interim dividend of 5 sen net per share for the quarter, with its strong Operating Free Cash Flow supporting a sustainable dividend yield.
Based on the Q2 financial highlights, service revenue increased 4.3 per cent to RM2,084 million, with 4.4 per cent and 4 per cent growth from both Consumer and Enterprise Businesses.
"Consumer Business recorded growth across all segments, bringing its revenue to RM1,698 million, up by 4.4 per cent.
"Enterprise Business continued its upwards momentum, delivering RM386 million in revenue, up 4.0 per cent, leveraging its strength in mobile, while its growing fixed and solutions segment yielded favourable results with a growth of 6.9 per cent.
"With Enterprise Business Registration Numbers (BRNs) up 4.0% year-on-year (YoY), it provided Maxis the opportunity for future revenue uplift," said Ogut.
With more Malaysians increasingly relying on converged connectivity and digital experiences at home, work and on the go, Maxis continues to attract customers with highly relevant solutions to meet their digital lifestyles.
This resulted in increased revenue across the company’s mobile and fixed offerings, with market leadership in both Postpaid and Prepaid mobile.
"Subscribers for its Postpaid segment (Maxis Postpaid & Hotlink Postpaid) continued to increase, recording a healthy 7.5 per cent growth, bringing the total number of postpaid subscriptions to 3.2 million.
"With borders reopening leading to the influx of tourists and foreign workers, Prepaid was resilient with Hotlink Prepaid Unlimited and Hotlink Prepaid Pantas offerings proving to be popular.
"The segment also had the highest ARPU in 18 months, at RM39.10, due to increased internet spend encouraged by the introduction of new internet passes of HotlinkMU," he said.
Meanwhile, Maxis’ home connectivity solutions increased by 18.1 per cent to 638,000 connections, leading to a 19.4 per cent growth in revenue.
Maxis's operating free cash flow went up by a substantial 40.3% YoY to land at RM1,174 million on the back of the company’s solid capital management initiatives.
It also marked the CAPEX for the quarter was at RM241 mill, up 33.9 per cent YOY with the company continuing its investments to deliver better network performance and customer experience by boosting its capacity to support the nation’s digitalisation agenda.
To reinforce Maxis as the preferred converged solutions provider, the company also formed largest 5G alliances comprising global and local technology industry partners, innovators and customers to accelerate technology breakthroughs.
Maxis also enabled digitalisation for SMEs, enabling a digital-ready future through technology and innovation, rewarding customers with amazing deals and experiences as well as empowering and recognising communities in a digital world.
