Overview
Our Business
Strategic Review Corporate Governance
Financial Statements
Other Information
page
7
Chairman’s Statement
Strong performance in a challenging
environment
In 2015, telco players continued to jostle for leadership
position in the mobile Internet space. Voice services
faced rising pressures from Voice over Internet Protocol
(“VoIP”) technology as widely adopted Internet Protocol
(“IP”) messaging services started adding voice capabilities.
Furthermore, the goods and services tax (“GST”) implemented
in early 2015 resulted in regulatory and consumer
uncertainties, which impacted revenues and costs.
But the demand for mobile Internet continued to rise sharply
as consumers’ digital demands grew and businesses look
for new ways of working in a fast growing digital economy.
This environment is a perfect match for Maxis as an Internet
enabler, as we renewed our focus and efforts towards
offering unmatched Internet experiences through the best data
offerings in the market.
Our high speed network is a critical driver for these
experiences, and our RM1.3 billion base capex investment
in network modernisation initiatives is contributing to our
4G leadership position in the market. These investments
also include quality and capacity building for our 2G and 3G
networks as well.
In our bid to further improve the quality of our 4G LTE
services across the country and to meet the growing demand
for data, we are pleased to have received approval from the
regulator, MCMC, to utilise our 1800 MHz spectrum. This will
contribute greatly towards achieving national goals, including
the 11
th
Malaysia Plan’s broadband targets.
We will continue to work with the regulator on spectrum
proposals to ensure we have a portfolio of spectrum to run
our businesses efficiently.
Group Performance
Maxis had a strong performance in 2015, with group service
revenue growing 3.8% year-on-year to RM8.5 billion, driven
by solid prepaid and improved core postpaid performance.
Our postpaid business continued to be stable despite the
intense competition. Core postpaid revenue grew 2.7% year-
on-year to RM3.7 billion with continued strong adoption of
MaxisONE plan.
Our prepaid business saw strong growth, with service revenue
growing 6.2% year-on-year to RM4.2 billion, supported by
rising data usage and bigger share in the migrant segment.
Our customers are also increasingly choosing our bundled
mobile and fibre broadband services. This has contributed
to our Integrated Services division’s revenue growth of
44% year-on-year to RM171 million as fibre broadband
subscriptions grew.
In 2015, EBITDA improved 4.1% year-on-year to RM4.4 billion,
while achieving EBITDA margin of 51.5%, reflecting our
continued focus on cost efficiency. As a result, PAT for 2015
was RM2.0 billion.
Based on four interim dividends of 5 sen net per share, the
Company declared total dividends of RM1.5 billion for the
financial year. This pay-out is aligned to our cash generation
and dividend policy.
Admired for Excellence
The first phase of our transformation journey is essentially
done, and I am proud that our goal of being Admired for
Excellence is within grasp. A lot of work has gone towards
this aspiration, and we have made it a priority to ensure our
products and services deliver the best value and experiences
to our customers.
I am pleased to say that our core MaxisONE postpaid and
Hotlink prepaid offerings have continued to set the standards
in the industry in 2015.
We have invested more than anyone else in our network,
which is indisputably the widest in the country. It is a critical
driver of customer experiences, so we continue to make
significant investments to improve its quality to perpetually
deliver the best data experience to our customers. With our
4G LTE leadership, our customers enjoy high-speed mobile
Internet in more places across Malaysia. This was made
possible with the acceleration of our capital programme and
huge network investment. We are also aggressively rolling
out LTE in East Malaysia and expanding our footprint in key
market centres as well as key secondary towns in this region.
investment in
network modernisation
initiatives
is contributing to our
4G
leadership
position in the market.
BASE CAPEX
RM
1.3
billion
