[UPDATED] Maxis net profit eases by 8.6% to RM329 mil in Q2 2022

KUALA LUMPUR – Maxis Bhd’s net profit eased by 8.6% to RM329 million in the second quarter ended June 30, 2022 (Q2 2022), from RM360 million in Q2 2021.

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% on chargeable income exceeding RM100 million for the assessment year of 2022, the company added. 

However, revenue for Q2 2022 rose 6.6% 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% y-o-y 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% to RM2.08 billion on the back of better contributions from both consumer and enterprise businesses.  

Consumer revenue increased 4.4% 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% to RM386 million, the telco said.

In line with building the foundation for the business and creating momentum, enterprise business accounts grew 4.0% to 89,000 business registration numbers as of Q2 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% 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 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, July 28, 2022