In a statement issued today, Maxis said its diverse offerings continued to attract customers resulting in increased revenue across the company’s mobile and fixed offerings, with market leadership in both postpaid and prepaid mobile.
Its enterprise business maintained its growth momentum this year, playing a key role in supporting SMEs and enterprises in their digitalisation activities through converged ICT offerings and strategic collaborations.
Maxis’ net profit however was 9.5% lower at RM329 million compared to last year, due to higher depreciation and amortisation costs, as well as a one-off increase in the corporate tax rate to 33% due to the prosperity tax.
However, revenue for Q2 FY2022 rose 6.6% to RM2.42 billion from RM2.27 billion previously, attributed to the rise in service and device revenues.
Maxis’ operating free cash flow rose by a substantial 40.3% year-on-year to RM1.17 billion underpinned by the group’s solid capital management initiatives, enabling it to declare an interim dividend of 5 sen per share for the quarter.
The telco said its service revenue increased 4.3% to RM2.08 billion on the back of better contributions from both consumer and enterprise businesses.
Consumer revenue increased 4.4% to RM1.7 billion, with a steady growth in postpaid and home connectivity, offset by a slight decline in prepaid. Enterprise revenue also rose 4% to RM386 million, the telco said.
In line with building the foundation for the business and creating momentum, enterprise business accounts grew 4% to 89,000 business registration numbers as of the second quarter of 2022.
Its chief executive officer Gökhan Ogut said the company’s solid performance across all segments underlines its “focus on strategy and agility”, and the group was well-positioned for continued growth in a rapidly changing and competitive telco landscape.
Its capital expenditure for the quarter stood at RM241 million, up 33.9% from last year, with the group continuing its heavy investments to deliver the best-converged network performance and customer experience, boosting its capacity to support the nation’s digitalisation agenda.
Contributions to Jendela’s (Jalinan Digital Negara) Universal Service Provision (USP) fund were recorded at about RM250 million in the first half of 2022, it added.
Moving forward, Maxis said the group remained focused and confident in its convergence strategy ahead of structural industry changes.
“Our track record of offering mobile and fibre converged services demonstrates that our convergence strategy is delivering results. Our differentiated network, service, innovative offerings and the resilience of our people have delivered sustainable results,” it added.