Maxis Delivers Solid Performance in Q2 2015
Maxis Berhad (Maxis) continued to strengthen its operating and financial performance in Q2 2015, underpinned by strong customer propositions and high performing network.
Service revenue for Q2 2015 of RM2,094 million was marginally lower than Q1 2015 but 2.2% higher than Q2 2014. The quarter-on-quarter prepaid growth momentum was impacted by the recent GST implementation on the prepaid service.
The number of revenue generating subscribers grew further in Q2 to reach 12.2 million. Maxis now has 9.1 million mobile Internet users and its smart-phone penetration stood at 65% this quarter.
For the second quarter, Maxis registered an Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) of RM1,101 million and an EBITDA margin of 52.2%, against RM1,047 million and 48.7% in the previous quarter. The improvement in EBITDA was mainly due to lower quantum of foreign exchange losses in the quarter under review. Compared to the same quarter in the preceding year, EBITDA and EBITDA margin improved by 3.5% and 1.1% from RM1,064 million and 51.1% respectively.
Profit after tax for the period stood at RM485 million, 6.6% higher than the RM455 million recorded in the preceding quarter and marginally higher ,than Q2 2014.
The quarter also saw Maxis investing higher at RM260 million to support network modernisation, LTE expansion and capacity upgrade to support traffic growth. Maxis will continue with high capex for 2015 of at least RM1.1 billion to complete its network modernisation, drive 4G LTE expansion, as well as further improving capacity and quality. Maxis leads the 4G LTE population coverage in the country, approaching 41% of the population and covering key market centres and state capitals. The target is to reach over half of the Malaysian population by year-end.
The ongoing process improvements and network performance have led to not only a larger customer base, but also happier customers, with one indication being the complaint level which is halved since last year and at the lowest level in over a decade.
Morten Lundal, Maxis Chief Executive Officer, said, "Operationally and financially, it was a good quarter for Maxis, taking into account the early GST hiccups and the general impact of GST on prepaid. Our intense focus on unmatched customer experience and to provide the best network for data is rewarded with more and happier customers."
The Company announced a second interim dividend of five sen per share.