PETALING JAYA: Maxis Bhd’s net profit for the second quarter ended June 30 fell 13.6% to RM343 million, from RM397 million in the same quarter of the previous year, due mainly to loss of wholesale business and higher impairment made to receivables.
Revenue for the quarter stood at RM2.15 billion, a 2.5% decline from RM2.21 billion previously.
Capital expenditure (capex) for the second quarter was RM259 million, 3% lower than in the preceding year’s corresponding three months, with the focus on protecting the network performance and rebalancing capacity, 5G readiness and enterprise business, although the movement control order/recovery movement control order period restricted some capex activities.
For the six-month period, Maxis posted a net profit of RM701 million, a 13% decline from RM806 million in the corresponding period of last year. Revenue for the period rose 1.2% to RM4.49 billion from RM4.44 billion previously.
The group has declared a second interim single-tier tax exempt dividend of 4 sen per ordinary share to be paid on Sept 24, 2020.
In regard to the quarter’s performance, its CEO Gökhan Ogut commented that the group has delivered strong performance amid the challenging environment, as it continues to lead the mobile market and deliver constant growth in its converged solutions for individuals, homes and businesses.
“We are confident of playing a key role as a catalyst for digitalisation for consumers and businesses, which is in line with our recent brand refresh built around our new brand purpose, ‘Always be ahead’,” he said in a press release.
Ogut said the group is committed to support its customers to be more digital and adapt to the changing environment.
He said it has the capabilities to be a strong partner to enterprises and SMEs, to empower them by delivering new technologies, models and mindsets through its converged offerings.
“We will continue to invest in our network to provide the best fixed and mobile connectivity to our customers. At the same time, we are accelerating our 5G network readiness, engaging with the industry on trials, RAN sharing and will feature even more use cases in the coming months. We are ready to deploy 5G and are committed to providing the best 5G innovation to Malaysia as soon as the spectrum is made available,” he said.
Looking ahead, while Maxis withdrew its FY20 financial outlook previously disclosed along with its fourth-quarter 2019 report on continued concerns over the Covid-19 pandemic, it said it remains confident of its convergence strategy.
“We continue to offer converged solutions to individuals, homes and businesses; and delivering differentiated and unmatched personalised experience,” it said.
Maxis also said it remains in a strong financial position to weather the crisis, as its balance sheet remains strong and our funding and liquidity are well positioned.
“The group has taken action to protect the safety of its employees, customers, the broader Malaysian economy and its core operations and remains alert to opportunities to strengthen and grow its business during this period of uncertainty,” it added.
source https://www.thesundaily.my/business/maxis-posts-136-decline-in-q2-net-profit-from-loss-of-wholesale-business-higher-impairments-AY3111992
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