Maxis sees moderate growth in Q1 2021 despite trying economic times

Jerry Choong
·2-min read
Maxis Berhad has reported an increase of profit-after-tax (PAT) by 4.7 per cent. — Picture by Yusof Mat Isa
Maxis Berhad has reported an increase of profit-after-tax (PAT) by 4.7 per cent. — Picture by Yusof Mat Isa

KUALA LUMPUR, April 23 — Domestic telecommunications corporation Maxis Berhad has reported an increase of profit-after-tax (PAT) by 4.7 per cent, or RM334 million more in the first quarter of 2021, compared to the fourth quarter of 2020.

In a statement, the company said its PAT was down 6.4 per cent year-on-year, however, due to higher depreciation in IT investments.

Its service revenue remained stable at RM1.96 billion, and continues to be resilient due to growth in subscribers across Maxis’ Postpaid,Prepaid and Fibre segments.

Prepaid subscription remains competitive, registering a growth of 3.4 per cent to 6.08 million customers and stable average revenue per user (ARPU) at RM38.

Maxis’ growth momentum in home connectivity continues with 24.1 per cent increase in fibre and wireless subscribers, totalling to 603,000 users.

Similarly its Postpaid Prime remains attractive to customers who are also adopting higher end plans, contributing to an 18.6 per cent increase in fibre subscribers, or 465,000 users, and a 17.6 per cent increase in revenue to RM154 million.

Postpaid’s ARPU remains stable at RM108. Additionally, its fixed wireless broadband subscriber base expanded by 46.8 per cent to 130,000 users, while revenue grew by 55.6 per cent to RM42 million, with its ARPU growing to RM111.

Maxis chief executive officer Gökhan Ogut said the company was pleased to have delivered quarterly results in a still-challenging environment.

“This has been achieved through our sharp focus on our customers and long-term growth strategy. For businesses, our journey into converged services and enterprise solutions within the past two years has given us a strong first-mover advantage in the industry.

“Together with our differentiated network, product innovation and committed people, we will continue to serve individuals, homes, and businesses, and help them thrive in this new norm of accelerated digitalisation,” he said.

The company’s operating free cash flow stood at RM667 million for the quarter, due to reduced income that offset the benefits from working capital initiatives. However the strong focus on cash flow management is delivering and improving the capital efficiencies.

The company has also seen an increased adoption of digital services. The Maxis and Hotlink app continues to see growing adoption,with 60 per cent of postpaid primary account holders on the MyMaxis App, while 73 per cent of prepaid mobile customers use the Hotlink Red App.

A four-sen interim dividend was declared for the first quarter of 2021, as Maxis continues its approach of prudent distribution during this challenging time to allow for the protection of its core business, in preparation for the opportunities arising from economic recovery

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