Maxis 9M revenue up at RM6.43b on prepaid growth

-A +A

KUALA LUMPUR (Oct 28): Maxis Bhd said third quarter and nine-month revenue rose from a year earlier as the mobile telecommunication network provider secured more prepaid subscribers.

In a statement to Bursa Malaysia today, Maxis said third quarter revenue rose 5% to RM2.17 billion from RM2.07 billion. During the third quarter ended Sept 30, 2015 (3QFY15), net profit, however, fell 6% to RM420 million from RM449 million.

Cumulative 9MFY15 net profit declined to RM1.27 billion from RM1.38 billion a year earlier, while revenue was higher at RM6.43 billion versus RM6.27 billion in 9MFY14. Maxis said prepaid subscribers rose to 8,850 from 8,120.

"Year-to-date, service revenue grew 4% to RM6.379 billion, driven by the strong performance of the prepaid segment. Prepaid service revenue grew 7.2% to RM3.143 billion whilst post-paid service revenue was relatively stable at RM2.92 billion," Maxis said.

Earnings before interest, taxes, depreciation, and amortisation (Ebitda) fell to RM3.17 billion from RM3.23 billion.

"The decline in Ebitda was primarily driven by unrealised foreign exchange losses from the weakening ringgit and higher staff costs largely due to a non-recurring reversal made in the same period last year.

"This was partially offset by lower prepaid service tax. The group will remain focused on strengthening its market position in a competitive environment," Maxis said.

The company proposed a tax-free dividend of five sen a share for 3QFY15. The ex-date falls on Nov 26 this year.

Looking ahead, Maxis said it expected low single-digit service revenue growth in FY15, while Ebitda was seen at similar levels compared to a year earlier.

The company said it could incur capital expenditure at between RM1.2 billion and RM1.3 billion.

At 12.30pm today, Maxis shares fell eight sen or 1% to settle at RM6.62 for a market value of RM49.71 billion. The stock saw 161,000 shares transacted.

(Note: The Edge Research's fundamental score reflects a company's profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)