KUALA LUMPUR (April 26): Maxis Bhd's new growth strategy gained momentum and drove its net profit 56% higher quarter-on-quarter to RM409 million on the back of revenue of RM2.23 billion.

In a statement in conjunction with the release of its financial results for the first quarter ended March 31, 2019, the telecommunications giant said in its last quarter it had made significant change to its long-term strategy, setting the foundation to be a strong converged solutions player in Malaysia.

However, on a year-on-year basis, Maxis' net profit fell 22% to RM409 million or 5.2 sen per share for first quarter ended March 31, 2019 (1QFY19) from RM523 million or 6.7 sen per share, as the group suffered lower average revenue per user (Arpu) and termination of network sharing agreement.

It said revenue was flat at RM2.23 billion for the quarter under review, compared with RM2.24 billion in previous corresponding quarter.

Maxis declared a first interim dividend of five sen per share, to be paid on June 29.

Maxis said the lower Arpu was due to the decline in Mobile Termination Rates (MTR) based revenue.

The group's blended Arpu fell to RM56, from RM59 in 4QFY18.

Moving forward, Maxis said its guidance remains unchanged for the full FY19. The market is expected to remain competitive as the group focuses on maintaining its position as Malaysia's leading converged communications and digital services company, by leveraging on its network and expanding its presence in the fixed broadband market for both consumer and enterprise segments, the telco said.

"In the mobiles market we will focus on building upon our core offerings and in the consumer and enterprise segments with innovative new solutions and services. In the fixed broadband market we will focus on executing new access agreements with access providers, migrating our existing base to new price points and higher speeds and providing new innovative offerings to both consumer and enterprise customers and increased bundling," it said.

In the statement, Maxis chief executive officer-designate Gökhan Ogut described 1QFY19 results as "stable" and "a quick recovery from 4QFY18".

"We are starting to deliver on the expectations of our ambitions, systematically building a momentum in executing our new growth strategy," he said.

Ogut said customer take-up of the group's converged, fibre and enterprise services has been strong, with the results exceeding Maxis' expectations.

"In terms of our people, we have reorganised ourselves to get everyone aligned towards a common goal. There is a lot of energy in the company, and while we have done a lot during the quarter, it is just the beginning of what we see as an exciting future for Maxis," he said.

At the midday break today, Maxis' share price was unchanged at RM5.34, giving it a market capitalisation of RM41.74 billion.