Maxis continues healthy growth momentum in Q2
- Profit After Tax of RM356 million, up 8.2% year-on-year (YoY)
- Service Revenue of RM2,216 million, up 4.9% YoY
- EBITDA of RM1,046 million, up 4.4% YoY
- Declares interim dividend of 4 sen per share
Maxis, Malaysia’s leading integrated telco, continued its healthy performance for the second quarter ended 30 June 2024, delivering consistent growth across both its core Consumer and Enterprise businesses. This contributed to a 4.9% year-on-year (YoY) increase in Service Revenue to RM2,216 million. The Company maintained its focus on meeting real customer needs in each segment, offering an expanded range of products and services to drive revenue and subscriber growth.
The strong topline growth coupled with disciplined cost management contributed to improved earnings before interest, tax, depreciation, and amortisation (EBITDA) by 4.4% YoY to RM1,046 million. As a result, Profit After Tax (PAT) rose by 8.2% to RM356 million.
The Company declared an interim dividend of 4 sen per share.
Maxis’ Consumer business registered a 3.7% YoY increase in service revenue due to stronger postpaid and home connectivity performance. Postpaid revenue rose by 5.2% YoY, supported by healthy subscriber growth of 8.0% YoY. Maxis continues to offer an expanded product range that meets the needs of customers of all market segments. Meanwhile, the prepaid segment which caters to youths remained resilient as subscribers rose by 2.3% YoY, attracted by greater value from personalised deals, internet passes and lifestyle perks.
In the home connectivity segment, service revenue grew by 9.6% YoY with fibre broadband as the primary growth driver. Maxis’ own-build fibre network and partnerships enable it to promote convergence through attractive broadband and mobile bundles, and deliver on its truly integrated proposition of fast, secure and reliable connectivity.
Maxis’ Enterprise business delivered a 10.8% YoY service revenue growth following its performance in fixed connectivity and digital solutions, with contract wins across public sector, corporate, wholesale, mid-market, and small and medium enterprise (SME) customers. Maxis is leveraging growing demand for worry-free, reliable solutions such as managed network services. In addition, the Company sees promising growth opportunities in fixed connectivity as more data centres are set up in the country.
“Our growth on all fronts is a testament to our uncompromising focus on real customer needs and determination to win in the market. We have built a solid foundation by staying disciplined across the business and leveraging the best of technology and partnerships to deliver on our strategy. Enabled by network, operational and service excellence, our strong performance demonstrates our readiness to take on a lead role in supporting Malaysia’s digital ambitions through the rollout of a 5G-Advanced network.” - Goh Seow Eng, Chief Executive Officer of Maxis
Maxis remains fully committed to a swift implementation of the Government’s second 5G network and bring its economic benefits to the rakyat and businesses.
Q2 2024 financial highlights: Q2 2024 vs Q2 2023
- Service Revenue increased by 4.9% to RM2,216 million, driven by Consumer and Enterprise business growth.
- Postpaid mobile maintained momentum with a healthy subscriber growth of 8.0%, bringing the total number of postpaid subscriptions to 3.72 million. This contributed to RM916 million in Consumer Postpaid revenue for the quarter, up by 5.2% compared to the same period last year.
- Prepaid mobile subscriptions grew by 2.3% thanks to attractive 5G internet passes and personalised daily lifestyle perks. The segment remained resilient with total subscribers at 5.82 million and RM648 million in revenue.
- Home Connectivity delivered steady service revenue growth, rising by 9.6% to RM251 million due to a focused go-to-market strategy for value creation. Home connections registered a 10.1% subscriber growth to 777,000 in comparison to the same quarter last year.
- Enterprise service revenue grew by a solid 10.8% to RM401 million for the quarter from growing demand for fixed connectivity and digital solutions, such as managed network services.
- EBITDA strengthened by 4.4% to RM1,046 million for the quarter due to greater revenue contribution from Consumer Postpaid, Fibre and Enterprise businesses.
- PAT grew by 8.2% to RM356 million in line with the steady EBITDA.
- Capex of RM116 million invested during the quarter in continuous effort to modernise its mobile network, expand its fibre footprint, and digitise.
- Operating free cash flow stood at RM1,016 million, contributed by strong working capital management, with a healthy cash balance of RM727 million as at Q2 2024.
Key Initiatives
- Collaborated with Huawei Malaysia on a 5G-A Smart City use case showcased in Labuan for key Government stakeholders.
- Launched Hotlink’s new streaming pass to bring affordable prepaid access to premium video content.
- Hotlink partnered MOONTON Games for the first-ever tournament powered by the local e-sports community – Hotlink x MPL MY Jaguh All Star.
- Collaborated with Penang state government on digital skills development and STEM education through flagship community outreach programmes eKelas Usahawan and eKelas.
