KUALA LUMPUR (April 24): In a rare move, Maxis Bhd said today the mobile telecommunication network provider considered it prudent to withdraw its previously advised guidance for financial year ending Dec 31, 2020 (FY20) until there is more clarity around the longevity and impact of the Covid-19 pandemic.

In a statement today to Bursa Malaysia in conjunction with the announcement on Maxis’ 1QFY20 results, the group said it is closely monitoring and assessing the impact of Covid-19 and that when it becomes appropriate to disclose any material information, it will be made in accordance with Bursa’s Main Market listing requirements.

"On Feb 20, the group released its quarterly report for the fourth quarter ended Dec 31, 2019, which included guidance on the financial outlook for FY20. The Covid-19 pandemic continues to raise concern. At this stage, it is hard to reliably predict how long it will take to contain the virus, the impact it has on Malaysia and the global economy, the impact on the demand for the services and following the MCO (Movement Control Order). Given these uncertainties, the group considered it prudent to withdraw its previously advised FY20 guidance until there is more clarity around the longevity and impact of the pandemic.

"We remain confident in our convergence strategy, driven by our strong differentiated network and the resilience of our people despite the unprecedented social and economic challenges brought by Covid-19. We continue to offer converged solutions to individuals, homes and businesses; and delivering differentiated and unmatched personalised experience.

"The group remains in a strong financial position to weather the crisis created by the Covid-19 pandemic. Our balance sheet remains strong and our funding and liquidity are well positioned. The group has taken action to protect the safety of its employees, customers, the broader Malaysian economy and its core operations and remains alert to opportunities to strengthen and grow its business during this period of uncertainty,” Maxis said.

Maxis' 1QFY20 net profit fell from a year earlier although the group’s total revenue rose. Maxis said net profit fell to RM358 million from RM409 million while group total revenue was higher at RM2.34 billion versus RM2.23 billion. Despite the net profit drop, the company declared a tax-exempt dividend of four sen a share.

According to Maxis, its service revenue, defined as group revenue excluding device and network income, fell to RM1.94 billion from RM1.95 billion due to the decline in prepaid revenue and loss in the wholesale business.

Maxis said growth in its postpaid subscriber base, and fibre business had offset the prepaid and wholesale business segments' performance.

The company said prepaid service revenue declined to RM714 million from RM797 million as the segment’s subscriber base fell 9% to 584,000 due to the continued subscriber identification module (SIM) consolidation and successful migration to the Hotlink entry point postpaid service.

As such, the group grew its postpaid subscriber base by 412,000 or 13.7% from a year earlier, it said.

At Bursa Malaysia’s 12:30pm break today, Maxis’ share price settled three sen or 0.56% down at RM5.32 for a market capitalisation of RM41.61 billion.

The stock saw 525,000 shares traded.