Maxis Q319 net profit 30% lower at RM358m

PETALING JAYA: Maxis Bhd’s third quarter (3Q2019) net profit fell 30.2% to RM358 million, from RM513 million in the previous corresponding quarter, driven by the loss of a wholesale agreement and increase in investment for growth in enterprise, fibre and customer experience, the group said in a Bursa filing today.

Revenue for the quarter ended Sept 30 was slightly higher at RM2.29 billion, from RM2.26 billion in 3Q2018. A third interim dividend of 5 sen a share was also declared.

“Postpaid service revenue for 3Q2019 decreased by 4.4% to RM979 million compared to RM1.03 billion in 3Q2018. Postpaid average revenue per user (ARPU) decreased to RM90, largely due to the change in the mobile termination rates (MTR) and ARPU dilution from Hotlink Postpaid Flex offerings.

“Prepaid service revenue declined 6.7% year-on-year to RM794 million from RM851 million on the back of a lower subscription base which was due to continued SIM consolidation, successful migration from prepaid to postpaid, and reduced MTR,” the group said in its filing.

The group also saw a 4.7% decrease in prepaid subscribers to 6.33 million subscribers in 3Q2019, from 6.63 million subscribers in 3Q18. Capital expenditure (capex) for the quarter was higher at RM242 million (3Q2018: RM195 million), mainly due to incremental investment for home fibre and enterprise growth.

“Data consumption continued to increase y-o-y with data usage increasing in both postpaid and prepaid. This reflects the competitive nature of the mobile business and the bundling of more data and more value,” said Maxis.

Meanwhile, on a cumulative basis, Maxis posted a 23.1% decline in net profit to RM1.16 billion, from RM1.51 billion in the previous corresponding period. Revenue for the nine months ended Sept 30 was also lower at RM6.72 billion, compared with RM6.74 billion previously.

Looking ahead, Maxis CEO Gökhan Ogut (pix) said the group’s convergence ambition was on track.

“We are making very good progress in our enterprise growth strategy with solid partnerships, and continuing to build a strong home fibre base in line with the recently launched National Fiberisation and Connectivity Plan (NFCP).

“We are already forging ahead with our 5G readiness and committed to deploy as soon as spectrum is made available. We will continue to deepen our engagement with our customers – individuals, homes and businesses – and in providing them with the best digital experience and converged solutions,” he said in a statement.

source https://www.thesundaily.my/business/maxis-q319-net-profit-30-lower-at-rm358m-NN1528690