Maxis Q2 earnings up 17.6% to RM574 million, declares 5 sen dividend

PETALING JAYA: Maxis Bhd reported a 17.6% increase in net profit to RM574 million for the second quarter ended June 30 from RM488 million in the previous corresponding period, buoyed by higher earnings before interest, taxes, depreciation and amortisation (ebitda) and lower property, plant and equipment related charges.

Revenue rose 3.3% from RM2.1 billion to RM2.17 billion.

The group has proposed an interim dividend of 5 sen per share.

Maxis said in a filing with the stock exchange that its postpaid revenue grew 2% to RM998 million from RM978 million a year ago, with a solid base of nearly 1.9 million MaxisONE customers with monthly average revenue per user (ARPU) of RM120.

Prepaid revenue, meanwhile, increased 2.9% to RM984 million from RM956 million in the same quarter last year.

Maxis invested RM373 million of capex in the first half and will continue investing more to ensure our customers enjoy the best mobile streaming experience.

For the financial year ending December 31, 2017, the group expects service revenue, absolute ebitda and base capital expenditure to remain at similar levels to financial year 2016.

"The group will continue to focus on strengthening its network leadership and deliver differentiated digital experience for its customers," it noted.

For the first six months, Maxis' net profit was up by 7.3% from RM1 billion to RM1.08 billion, with revenue expanding 2.1% from RM4.24 billion to RM4.33 billion.

Maxis share price slipped three sen to RM5.53 on some 2.61 million shares done, giving it a market capitalisation of RM43.19 billion.