Telco battleground: Maxis vs Digi heads-up
By Goh Thean Eu February 9, 2017
- Maxis outperforms Digi when it comes to the top and bottomline
- Digi edges Maxis when comes to attracting customers
In short, the company managed to grow its full year revenue (marginally) and net profit by double-digits. The company's CEO Morten Lundal is certainly pleased with the results.
"2016 was a challenging yet a good year for us. Despite the intense price competition in the market, we performed well by focusing on offering our customers uniquely attractive value propositions," said Lundal in a statement.
"Our customers now enjoy a combination of lots of data at affordable prices on the best network, and we are proud to record all time high satisfaction. All in all, 2016 was a year of good progress with positive momentum heading into 2017."
While the overall numbers may look pleasant for Maxis, the key now is: how did the company performed against rival Digi.com Bhd?
Below are some of the key data points:
For the full year ended December 31, 2016, Digi's total revenue, service revenue and even prepaid revenue declined by 4.58%, 1.85% and 6.6%, respectively. In contrast, Maxis' full year revenue increased marginally at RM8.61 billion.
Although Maxis also registered a decline in full year service revenue (-1%) and prepaid revenue (-3.7%), the declines were not as much as Digi's.
While Maxis may have higher postpaid revenue than Digi, it only managed to grow its postpaid revenue by a mere 0.2%. In contrast, Digi manage to outshine Maxis in the postpaid segment by registering a strong 10.4% growth during the year.
In 2016, Maxis managed to grow its net profit by a commendable 15% at RM2.01 billion, while Digi's net profit declined by 5% at RM1.63 billion. It also managed to grow its earnings before interest, tax, depreciation and amortisation by 5% at RM4.55 billion.
In contrast, Digi's full year Ebitda fell marginally (0.7%) at RM2.96 billion. Nevertheless, Digi managed to expand its Ebitda margin by 1.7 percentage points at 45%. Although Digi recorded a better margin improvements, it still has a lot of catching up to do before it reaches the 50% Ebitda margin level like Maxis.
Next Page: Digi still the preferred choice for customers