Maxis Q3 net profit records 3.1 per cent dip, but growth continues in all segments

SHAH ALAM - Maxis Bhd’s net profit in its third quarter (Q3) ended Sept 30, 2022, is RM315 million which dropped 3.1 per cent from RM325 million in the same quarter last year due to the one-off prosperity tax.

However, the company recorded improved performance for the quarter with its service revenue increasing by 3.7 per cent to RM2.1 billion.

This was mainly from the consumer and enterprise segment.

Its earnings before interest, taxes, depreciation, and amortisation (EBITDA) also saw an increase, up three per cent to RM1 billion as a result of continued cost management initiatives.

For the quarter, the company’s consumer business recorded a revenue of RM1.7 billion, up by 4.1 per cent with the postpaid segment enjoying steady subscriber growth.

This has contributed to a six per cent increase in revenue, amounting to RM830 million.

Meanwhile the prepaid segment remained resilient despite a continued pre-to-post migration, recording a slight drop of 1.8 per cent in subscription.

The segment saw continued adoption of Hotlink Unlimited, growing usage of Hotlink Prepaid Pantas from new segments and returning migrants compensating for prepaid-to-postpaid subscriber movements.

Home Connectivity saw a double digit revenue growth of 16.2 per cent with 83,000 additional home connections year-on-year, bringing the total home fibre connections to 652,000.

The telco’s enterprise business delivered RM387 million in revenue, up 1.8 per cent, with focus on expanding its convergence capabilities.

Its Business Registration Numbers (BRNs) also increased by five per cent, ensuring continued potential for revenue uplift.

The capital expenditure (Capex) was RM272 million, with the company continuing to invest into delivering the best converged network performance and unmatched personalised experience in support of the nation’s digitalisation agenda.

With more customers and businesses connecting to its network to ensure that they enjoy an All-Ways Connected (Rangkaian Menyeluruh) network experience, Maxis continued to invest significantly in its network and in fulfilling its commitments to Jalinan Digital Negara (Jendela).

Meanwhile, Maxis’ 5G Alliance which was formed in June is on a strong momentum, expanding now to 23 members and working with global and local partners to create and commercialise 5G use cases as well as IoT solutions across industries in Malaysia and Asia Pacific (Apac).

Its chief executive officer Gökhan Ogut said the quarter’s strong performance underlines 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,” he said.