Maxis 3Q net profit at US$123mil; declares 5 sen dividend
By Kiran Kaur Sidhu October 18, 2018
- Net profit driven by surging data growth, cost optimisation and market initiatives
- Launched new broadband plan during the quarter at 65% lower price point
MAXIS Bhd recorded a net profit of RM513 million (US$123.47 million) for the third quarter ending Sept 30, 2018 (3Q18) , driven by surging data growth, positive results from cost optimisation and aggressive marketing initiatives.
In the corresponding quarter a year ago, the group reported a RM564 million net profit. The group’s revenue for 3Q18 stood at RM2.26 billion compared to RM2.3 million a year ago.
For the cumulative nine-month period ended Sept 30, 2018, the group reported a net profit of RM1.51 billion compared to RM1.64 billion the year before. Revenue fell to RM6.74 billion from RM7.04 billion in the previous year.
Earnings per share reduced to 6.6 sen from 7.2 sen previously. The group announced a third interim dividend of 5 sen per share to be paid on Dec 27, 2018.
Some of the initiatives Maxis has taken during the quarter include new fibre broadband plans at prices 65% lower. The group also spent RM195 million in capex this quarter for network maintenance and capacity expansion, with plans to accelerate this investment further in the coming quarter.
The chief executive officer of Maxis, Robert Nason (pic), believes the company achieved good quarterly operating performance driven by data growth and demand for its innovative offerings from both consumers and businesses.
However, the company also expects some challenges ahead. “We are pleased with our solid core performance and while it is tracking ahead of our expectations, we anticipate strong headwinds emerging with the tapering of our wholesale revenue, the impact of sales and services tax, investment in our new fibre offerings and continued intense price-focused competition,” said Nason.
Meanwhile, the chief operating officer of Maxis, Gökhan Ogut said the company is working hard to ensure its solutions provide customers with the best value.
“Customers can see our commitment with the recent launch of our most affordable broadband plans during the quarter. Moving forward, we will continue to focus on enhancing our digital capabilities through our digital transformation programme, further expand our fibre and convergence offerings, and expand both the market coverage and service offerings in Enterprise solutions," he said.