Maxis records solid Q3 performance, delivering growth across all segments

Maxis records solid Q3 performance, delivering growth across all segments
  • EBITDA increased 3.0% due to continued cost management initiatives
  • Profit after tax, US$66 mil, 3.1% lower despite solid EBITDA,

Maxis records solid Q3 performance, delivering growth across all segmentsMaxis continued to deliver growth across all segments, driven by performance of its consumer and enterprise businesses. 

In a statement, the telco said it reported higher service revenue in the third quarter ended Sept 30, showing healthy EBITDA and profit after tax. It also declared an interim dividend of 5 sen net per share for the quarter.

It added that during the quarter, its home fibre broadband subscriptions continued to see growth, with the number of subscribers tripling since 2018. 

This helped solidify its position as a leader in convergence, Maxis claimed.

With more customers and businesses connecting to its network, to ensure that they enjoy an all-ways connected (Rangkaian Menyeluruh) network experience, the firm said it continued to invest significantly in its network and in fulfilling its commitments to Jalinan Digital Negara (Jendela). 

It added that its capex investments for the quarter stood at US$57 million (RM272 million) to support the continued growth in data traffic and fibre rollout.

Gökhan Ogut (pic, above), chief executive officer, Maxis said the firm is pleased with another strong performance for this quarter, which underlines its stability in building the foundation for further growth. 

“Our focus will always be on our customers and ensuring that we continue to improve and provide the best experience through our network, digital solutions and services.

“We look forward to bringing soon the best of 5G services to our customers who can now sign up for exciting 5G device offers that have been launched,” said Ogut.

Maxis said its commitment to deliver an unmatched personalised experience is a point of differentiation, including its continuous improvement in self-serve digital capabilities as well as network performance. 

This has resulted in higher customer satisfaction levels than the previous quarter with a touchpoint Net Promoter Score of +67 points, up 5 points YoY, it added.

It said the Maxis 5G Alliance which was formed in June, is on a strong momentum, expanding now to 23 members and working with global and local partners to create and commercialise 5G use cases as well as IoT solutions across industries in Malaysia and APAC.

It said the recently launched Sustainability Strategy, MAX+, is an amplification of its corporate strategy to build a more sustainable future through Environment, Social and Governance practices.

Some of Maxis’s other Q3 financial highlights Year-on-Year – Q3 2022 vs Q3 2021 include:

[RM1 = US$0.21]

  • Service Revenue increased to US$444,000 (RM2,108 million), up 3.7%, a result of healthy growth in both consumer and enterprise businesses;
  • Consumer business recorded a revenue of US$362,000 (RM1,721 million), up by 4.1%;
  • Home Connectivity saw double digit revenue growth of 16.2%, with 83k additional home connections YoY, bringing the total home fibre connections to 652k;
  • Enterprise Business delivered RM387 million in revenue, up 1.8%, with focus on expanding its convergence capabilities;
  • EBITDA increase by 3.0% to RM1,006 million as a result of continued cost management initiatives.
  • Profit after tax  was at RM315 million, 3.1% lower despite the solid EBITDA and higher YoY Profit Before Tax;
  • Capex for the quarter was at RM272 million while operating free cash flow for the quarter was RM812 million, down 22.6%, due to higher payment to suppliers, which is expected to normalize within the year.
  • As at the end of the quarter reported, the company retains a strong cash flow of over RM1 billion.