PETALING JAYA: Maxis Bhd delivered robust results in the first quarter of its financial year 2022 (1Q22), driven by its convergence strategy.
Maxis posted a 7.4% higher revenue to RM2.41bil for the 1Q22 compared with RM2.24bil in the previous corresponding quarter.
In a statement, Maxis said its service revenue that consist of consumer business and enterprise business rose to RM2.03bil for the quarter, a 3% year-on-year (y-o-y) increase compared to RM2.02bil previously driven by its postpaid, home connectivity and enterprise business segments.
The company’s consumer business revenue increased 2.4% y-o-y to RM1.64bil due to its efforts in providing converged solutions.
“Our top priority is to continue to deliver a great converged network with an unmatched personalised experience across all channels for our customers,” said Maxis chief executive officer Gokhan Ogut.
Maxis’ postpaid segment saw the overall subscriptions increase 9.2% y-o-y while its home connectivity segment was robust with connections up 19.2% y-o-y.
“Home fibre saw an additional 24,000 connections in the first quarter alone driven by strong adoption of Maxis Unlimited Postpaid and fibre converged packages,” it said.
Speaking of enterprise business revenue, Maxis saw an improvement of 5.4% to RM388mil as it continues to build strong foundation of accounts in its journey to be the top information and communications technology solutions provider.
Meanwhile, the company’s net profit for 1Q22 stood at RM298mil, a 10.8% decrease compared with RM334mil in the previous corresponding quarter, mainly due to the spectrum rights amortisation.
However, its net profit increased 3.1% quarter-on-quarter as it recorded RM289mil net profit in the previous quarter due to lower depreciation costs with the 3G network fully shut down.
The company recorded 3.2% y-o-y dip in its earnings before interest, taxes, depreciation, and amortisation for the 1Q22 to RM930mil compared with RM961mil in the previous corresponding quarter.
“This is mainly due to increased contracted device volume driving device subsidies, which will provide consistent revenue over the contract period in the coming months.” it said.Maxis has invested RM171mil in its capital expenditure (capex) for the 1Q22, which translates to RM35mil or 25.7% higher, compared with RM136mil in the previous corresponding quarter. Maxis said the capex focus was on protecting the network performance, rebalancing capacity and supporting the enterprise business as well as fulfilling Jalinan Digital Negara targets.
“The operating free cash flow, normalised for RM185mil universal service provision payment, remained robust at RM669mil, up 11.3% y-o-y driven by a strong focus on working capital initiatives and cash flow management,” it said.
Maxis declared an interim dividend of 5 sen per share for the 1Q22 compared to 4 sen per share in the previous corresponding quarter.