KUALA LUMPUR (Nov 4): Maxis Bhd's net profit for the third quarter ended Sept 30, 2022 (3QFY22) dropped 3.1% to RM315 million from RM325 million a year ago, due to a one-off increase in corporate tax rate to 33% as a result of prosperity tax.

Quarterly revenue grew 5.9% to RM2.41 billion from RM2.27 billion in 3QFY21, driven by a 3.7% higher contribution from its service revenue. Its earnings per share (EPS) dropped to four sen from 4.2 sen previously, according to a Bursa Malaysia filing.

The telco declared a third interim dividend of five sen per share, to be payable on Dec 22, bringing the total dividend declared for the cumulative nine months ended Sept 30, 2022 (9MFY22) to 15 sen per share, more than its EPS of 12 sen for 9MFY22. The dividend per share of 15 sen was also higher than the 12 sen declared for the previous corresponding period.

Maxis posted a net profit of RM942 million, down 7.6% year-on-year, in 9MFY22. Its revenue, however, expanded 6.6% to RM7.24 billion.

Maxis reported that its operating free cash flow (OFCF) for the quarter was RM812 million, down 22.6%, due to higher payments to suppliers, which it said should normalise within the year. As at Sept 30, the company retained an OFCF of RM2.33 billion.

The telco's consumer business revenue increased 4.1% to RM1.72 billion, driven by increases in post-paid and home connectivity revenues.

"Post-paid segment enjoyed steady subscriber growth, up 6.4%, bringing the total number of post-paid subscriptions to 3.27 million," the telco said. "Home connectivity saw double digit revenue growth of 16.2%, with 83,000 additional home connections year-on-year, bringing the total home fibre connections to 652,000."

It said that enterprise revenue also increased 1.8% to RM387 million, attributed by the increase from the converged solutions provided.

"Business Registration Numbers also increased by 5%, ensuring continued potential for revenue uplift," the group said.

For its FY22 financial outlook, Maxis forecast its service revenue to be a low to mid single digit increase, taking into consideration the domestic and global economic outlook, rising inflation and interest rates.

It also expected the earnings before interest, taxes, depreciation, and amortisation of the company to be flat to a low single digit increase versus FY21's.

In addition, Maxis said its capital expenditure investments for the quarter stood at RM272 million, supporting the continued growth in data traffic and fibre roll-out.

"Maxis continued to invest significantly in its network and in fulfilling its commitments to the National Digital Network (Jendela)," the group said.

As of 2.13pm, share price of Maxis was up 1.08% or four sen at RM3.74, valuing the group at RM29.28 billion.