KUALA LUMPUR, July 19 – Maxis Bhd’s service revenue rose to RM2.01 billion in the second quarter ended June 30 2018, from RM1.98 billion a year ago.
However, a decline in the prepaid segment dragged Maxis’ net profit by 16.4 per cent to RM478 million from RM572 million recorded in the same quarter a year ago.
Prepaid service revenue declined by 14.3 per cent to RM1.7 billion, mainly attributed to a lower subscription base which was impacted by the continued SIM consolidation, migration to postpaid and intense price competition.
Average revenue per user (ARPU) remained relatively high and stable at RM41 per month while revenue in Q2 eased 3.8 per cent to RM2.25 billion from RM2.34 billion, according to a filing to Bursa Malaysia today.
For the six months, Maxis’ net profit eased 6.8 per cent to RM1 billion from RM1.07 billion, while revenue dropped 4.8 per cent to RM4.48 billion from RM4.71 billion.
The telecommunication services provider expects the market to remain competitive but continues to focus on maintaining its leadership position by leveraging on strong 4G LTE network with its leading coverage and speed.
“We are happy that we are seeing strong growth in postpaid and good progress in the recovery of our prepaid business. We will continue to focus on operational efficiencies and invest in sustaining a superior network,” said chief executive officer Robert Nason in a statement yesterday.
“All in all, we feel upbeat about what’s in store for our customers as we create more quality digital experiences for them,” Nason added.
Maxis said in the postpaid market, it would focus on building upon its flagship MaxisONE Plan as it continued to innovate value accretive family-centric offerings and innovative device propositions.
“In the prepaid market, we will maintain our focus on high mobile internet users and profitable segments particularly in the foreign worker segment, whilst expanding our use of data analytics for segmental offerings to drive incremental ARPU,” it said.
Maxis maintained its guidance for the financial year ending December 31, 2018 with service revenue and earnings to decline by mid-single digit and high single digit respectively, base capital expenditure to be around RM1 billion and free cash flow to be at a similar level to financial year 2017.
Maxis declared a second interim single-tier tax-exempt dividend of five sen per share to be paid on September 27.