Maxis Q2 Net Profit Up 10.6%

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PETALING JAYA, Jul 21 – Maxis Bhd’s earnings improved by 10.65% to RM448 million in the second quarter ended June 30, 2016 (Q2’FY16) from RM441 million a year ago. It said yesterday normalised earnings before interest, tax, depreciation and amortisation (ebitda) in the quarter stood at RM1.0 billion with normalised ebitda margin of 47.9%, against RM1.15 billion and 54.0% respectively in the previous corresponding period. 

“Ebitda in the quarter was primarily impacted by higher traffic-related costs from increased international direct dialing traffic, higher sales and marketing expenses as well as realised foreign exchange losses. Sales and marketing expenses rose on the back of new product launches,” it told Bursa Malaysia.

In Q2’FY16, Maxis service revenue dropped slightly to RM2.05 billion against RM2.08 billion in the same period last year. Maxis said on the back of lower revenue and ebitda, normalised profit declined to RM421 million, compared to RM484 million in the preceding quarter. Maxis declared a second interim dividend of 5 sen per share.

Maxis CEO Morten Lundal said Q2’FY16 was not the company’s easiest quarter, where competition tried to improve subscriber market share by lowering prices.He in a separate press release said after some initial market turbulence, they saw at the closing of the quarter our results improve and they managed to keep their revenue and profit at similar levels compared to last year.

Lundal noted that in April, Maxis upgraded over a million customers with a lot more data. “That was the largest auto-upgrade we’ve ever done at Maxis and largest ever in Malaysia. He said Maxis invested over RM1.3 billion last year, and plans to invest the same amount this year.

For the six months period, net profit grew 18.21% to RM1.0 billion from RM851 million in the same period for 2015. Service revenue dropped slightly to RM2.05 billion from RM2.08 billion in the same period last year. For the financial year ending Dec 31 2016, the group expects service revenue, absolute ebitda and base capital expenditure to remain at similar levels to financial year 2015.

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