Maxis Berhad
Annual Report 2015
page
10
CEO’s Statement
Businesses in Malaysia are catching on to the digital wave as
they look for new ways of working and transform how they
engage and build relationships with their customers. It is
overwhelmingly clear that the Internet, broadband and mobile
are embraced by nearly every person and organisation in
Malaysia and these technologies will just continue to increase
in importance.
This is clearly a good trend for our industry; to work with
the ever-expanding demand. The whole nation, everybody
from large businesses to young kids, wants more of our
products. This can’t be a bad situation to be in. But we are
not just about providing access. We want to be a critical
driver in the transition of our customers’ daily lives to a digital
empowerment in the way they live and work. We have made
good progress towards this ambition but we view this as a
long-term aim. We are happy with our progress, and we will
work even harder to provide a superior “Always On” data
experience for our consumers with their ever-increasing
digital appetite. There is a massive opportunity for new digital
ways of working which we will tap into. 2016 definitely
promises to be an interesting year for Maxis.
We now view 2014 and 2015 as the first phase of our
transformation; becoming a high performing mobile company.
We now enter the second phase of our transformation, where
we, over 2016 and 2017 transform ourselves to deliver
broader solutions to homes and enterprises, delivered over
increasingly digital interfaces.
BUILDING ON A GOOD MOMENTUM
When we started our transformation journey two years ago,
we wanted to do two things really well; to deliver a Worry-
Free and Unmatched Customer Experience, and be really
modern in the way we set up the company. In 2014, we
successfully fixed the fundamentals. We intensified our efforts
and went through a very good 2015, customers are a lot
happier - we have the highest customer satisfaction we have
ever seen in various channels.
Operationally, positive improvements that we gained in 2014
are now translated into growth in revenues, profit and market
shares. I am very happy that 2015 actually became the year of
performance for Maxis. These are indeed proud achievements
for us:
•
Total service revenue: RM8.5 billion; up 3.8% year-on-
year
•
EBITDA (normalised) – RM4.4 billion
•
EBITDA Margin – 51.5%
•
PAT (normalised) – RM2.0 billion
•
Prepaid: 6.2% growth year-on-year in service revenue
•
Postpaid: 623,000 MaxisONE plan subscriptions
•
Mobile Internet subscribers: 72% of base
•
LTE coverage: 71% of population; widest in Malaysia
On the postpaid front, the MaxisONE plan is driving ARPU and
revenue growth. We further enriched this plan’s Worry-Free
value proposition to allow sharing of unlimited talk and text
plus any amount of data with anyone through our MaxisONE
Share. We then introduced Zerolution, an industry first and
a breakthrough smartphone ownership programme. It allows
MaxisONE customers to own a brand new phone every year
without any upfront payment and it is something people really
like. Despite the tough competition during the year, more than
20% of our customers are on MaxisONE plan, making our
postpaid revenue relatively insensitive to the decline in voice
and SMS.
Our success with #Hotlink’s Always On proposition in the
prepaid segment saw our key competitors again imitating our
moves with similar product propositions in the market. We
had strong mobile Internet growth with strong gross adds and
sustained survival rates. Our prepaid service revenue grew
6.2% year-on-year despite a tough market environment.
During the year, we also increased our product bundling
efforts as an innovative differentiator - MaxisONE Plan
customers can subscribe to our fixed Maxis Fibre Internet
available throughout Malaysia at preferred rates, and our
Hotlink ReloadPlus bundles high-speed mobile Internet with
each prepaid top-up.
SME mobile and fixed services are driving growth in our
Enterprise segment. Our MaxisONE Business plan is gaining
traction with its Worry-Free unlimited voice and SMS features.
They are backed by ONEBusiness Essentials which offers
24/7 dedicated customer service, telecom expense manager,
mobile device management, ability to consolidate device
subsidies across an organisation, and doorstep delivery. We
encourage our Enterprise and SME customers to think and
Service Revenue
EBITDA Margin
EBITDA
PAT
RM
8.5
billion
51.5
%
RM
4.4
billion
RM
2.0
billion
