Friday 29 Mar 2024
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KUALA LUMPUR (April 21): Maxis Bhd reported a 26% increase in first quarter net profit at RM518 million from a year earlier on lower operating cost and rise in postpaid telecommunication revenue.

In a filing to Bursa Malaysia today, Maxis said net profit rose to RM518 million in the first quarter ended March 31, 2016 (1QFY16) from RM410 million. Group revenue fell to RM2.14 billion from RM2.15 billion.

Maxis declared a tax-free dividend of five sen a share for the quarter under review, payable on June 29. The dividend ex-date falls on May 27 this year.

In a separate statement today, Maxis chief executive officer Morten Lundal said the group's financials came amid challenging times.

"This quarter, we recorded similar revenue and profit levels compared to last year in a turbulent market context with a lot of promotional activities.

"We are particularly happy with the progress of our MaxisONE family, which is nearing one million customers. We are also proud of our expanding and industry leading LTE network, which has reached over 74% of the country, driven by the significant increase of more than 100% in 4G device penetration in our customer base," Lundal said.

According to notes accompanying Maxis' results, the company's operating cost had fallen due to lower network expenses and removal of prepaid service tax.

Maxis said postpaid revenue grew to RM994 million from RM972 million a year earlier although prepaid revenue was lower at RM1.02 billion against RM1.05 billion.

Maxis said, "Our prepaid subscription momentum in the period under review was impacted by price-focused competition."

At 12:30pm, Maxis shares rose three sen or 0.5% to RM5.96 for a market value of RM44.76 billion. The stock saw 534,400 shares traded.

 

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