Maxis YTD revenue up 1.9%, profits down 9.1%
By Digital News Asia November 29, 2012
- 13.9 million subscriptions, with revenue generating subscription base of 12.8 million
- Non-voice revenue contributing 45.4% to mobile revenue
MAXIS Berhad announced its financial results for the nine months ended Sept 30, 2012, saying it registered overall growth in all its core business segments, but reported lower profits after tax.
In the period under review, Maxis recorded 1.9% growth in revenue to RM6.661 billion from RM6.535 billion a year ago on the back of higher revenue from all business segments. Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA) stood at RM3.294 billion with EBITDA Margin at an industry-leading 49.5%, despite strong competition and aggressive market initiatives.
However, it registered a profit after tax (PAT) of RM1.482 billion, 9.1% lower compared to the RM1.630 billion a year ago. [RM1 = US$0.33].
“We are pleased that this quarter we have shown growth across all our core businesses,” said Maxis chief executive officer Sandip Das (pic).
“We are now well positioned to strengthen future revenue streams, having launched several tariff initiatives for our customers over the last nine months, in the areas of IDD rates, roaming, mobile Internet, postpaid and prepaid – all of which are beginning to bear fruit,” he claimed.
“It is also reassuring to see that revenue generating subscribers growing in both postpaid and prepaid categories.”
Maxis said its non-voice revenues now stood at 45.4% of mobile revenues, attributing this to its introduction of new data products and by improving overall consumer data experience on its networks.
It said a large number of its customers use smartphones, which Maxis continues to seed in the market, to access the Internet actively, resulting in 63% of its non-voice revenue coming from Net usage.
“In addition, improved values offered on traditional voice packages are stimulating usage leading to growth in voice revenues,” Sandip said. “This quarter, revenues have also begun to stream in from our wholesale arrangements with U Mobile.”
The company declared a third interim dividend of eight sen per share amounting to RM600 million to its shareholders this quarter.
In the third quarter itself, Maxis posted a revenue of RM2.216 billion, while its EBITDA stood at RM1.055 billion and EBITDA margin was at 47.6%. Maxis registered a PAT of RM443 million, 4.9% lower compared to RM466 million in the second quarter.
PAT performance for both the nine months and Q3 2012 was impacted by accelerated depreciation for network modernization, Maxis said. Additionally, PAT for the nine months ended Sept 30 was also impacted by asset write-offs amounting to RM125 million.
Maxis continued to lead the market with a total of 13.9 million subscriptions, including a revenue generating subscription base of 12.8 million as at end of September 2012. For the quarter under review, Maxis’ RGS postpaid base grew by 27,000, while prepaid RGS registered 51,000 net additions.
The company said it has been making aggressive market moves aimed at improving revenue growth and customer experience. These moves include significant tariff adjustments, more value for money offers, loyalty and retention initiatives, and introduction of new regional offers.
Maxis invested close to RM400 million in the first nine months of 2012 to modernize and upgrade its network. The Company expects to increase its capex (capital expenditure) spend to support new IT initiatives and on-going network investments in the fourth quarter.
Notwithstanding that, overall 2012 capex is expected to be below guidance.
“Moving into the last quarter of the year, we are continuing with our market moves, focusing our efforts on delivering innovative product offerings, integrated propositions, delivering a superior customer experience as well as driving operational efficiency and network utilization,” said Sandip. “Retention and customer loyalty programs remain a major theme.”
On the Home services front, the Astro and Maxis partnership is progressing well with both parties working towards launching Astro B.yond IPTV riding on Maxis own fiber footprint by the end of the fourth quarter, he added.