Maxis records RM329m Q2 net profit, declares five sen dividend

Maxis records RM329m Q2 net profit, declares five sen dividend

A general view of the Maxis logo in Kuala Lumpur June 9, 2021. — Picture by Firdaus Latif

Thursday, 28 Jul 2022 2:42 PM MYT

KUALA LUMPUR, July 28 — Maxis Bhd recorded a net profit of RM329.0 million in the second quarter ended June 30, 2022 (Q2 FY2022).

In a filing with Bursa Malaysia today, Maxis said its earnings were impacted by higher depreciation and amortisation charges.

It was also impacted by the one-off increase in the corporate tax rate to 33 per cent on chargeable income exceeding RM100 million for the assessment year of 2022, added Maxis.

However, revenue for Q2 FY2022 rose 6.6 per cent year-on-year (y-o-y) to RM2.42 billion from RM2.27 billion previously, attributed to the rise in service and device revenues.

Maxis’ operating free cash flow rose by a substantial 40.3 per cent year-on-year to land at RM1.17 billion on the back of the group’s solid capital management initiatives, enabling it to declare an interim dividend of 5 sen net per share for the quarter.

The telco said its service revenue increased 4.3 per cent to RM2.08 billion on the back of better contributions from both consumer and enterprise businesses. Consumer revenue increased 4.4 per cent to RM1.698 billion, with a steady growth in postpaid and home connectivity, offset by a slight decline in prepaid. Enterprise revenue also rose 4.0 per cent to RM386 million, the telco said.

In line with building the foundation for the business and creating momentum, enterprise business accounts grew 4.0 per cent to 89,000 business registration numbers as of second quarter of 2022, said Maxis.

Its chief executive officer Gökhan Ogut said the company’s solid performance across all segments underlines its “focus on strategy and agility”, and the group was well-positioned for continued growth in a rapidly changing and competitive telco landscape.

Its capital expenditure for the quarter stood at RM241 million, up 33.9 per cent y-o-y with the group continuing its heavy investments to deliver the best-converged network performance and customer experience, boosting its capacity to support the nation’s digitalisation agenda.

Contributions to Jendela’s Universal Service Provision (USP) fund were recorded at about RM250 million in the first half of 2022, it added.

Moving forward, Maxis said the group remained focused and confident in its convergence strategy ahead of structural industry changes.

“Our track record of offering mobile and fibre converged services demonstrates that our convergence strategy is delivering results. Our differentiated network, service, innovative offerings and the resilience of our people have delivered sustainable results,” it added. — Bernama