4 key takeaways from Maxis’ Q2 2016 results: Page 3 of 4

 
Overall subscriptions trending down
 

4 key takeaways from Maxis’ Q2 2016 results: Page 3 of 4

While Maxis may have scored a point in the second quarter with its MaxisONE plan, it was not enough to win the game: This did not result in a higher overall subscriber base.
 
A look at the table above (we apologise for the low resolution) shows that revenue generating subscribers (RGS) were on a downtrend, in both the postpaid and prepaid segments.
 
For the first half ended June 30, 2016, its RGS was at 11.02 million, comprising 8.11 million prepaid subs and 2.66 million postpaid subs.
 
Bear in mind that these RGS numbers are not “market definition subscribers.” The company defines RGS as active line subscriptions and excludes those who do not have any revenue-generating activities for more than 30 days.
 
In terms of its market definition subscriber base, Maxis ended the first half with 12.25 million subs, comprising 9.27 million prepaid subs and 2.98 million postpaid subs.
 
Aggressive network investment
 

4 key takeaways from Maxis’ Q2 2016 results: Page 3 of 4

During Q2, Maxis’ capital expenditure (capex) was at RM333 million. That is a huge amount, especially when rival Digi.Com Bhd spent just RM167 million on capex in the same quarter.
 
To be fair though, Digi did spend RM171 million in Q1 2016, more than the RM159-million capex spent by Maxis in the same period.
 
For the first half, Maxis’ capex was at RM492 million, more than the RM353 million capex it spent a year ago.
 
As a result of this, the company managed to grow its 3G and 4G (Third and Fourth Generation) population coverage to 94% and 80%, respectively. A year ago, the 3G and 4G population coverage were at 88% and 41%, respectively.
 
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