PETALING JAYA: Maxis Bhd is off to a strong start for the year with a 7.4% increase in net profit for the first quarter ended March 31 (Q1 FY2023) to RM320 million from RM298 million the same quarter a year ago.
Net profit was also up quarter-on-quarter by 33% from RM240 million for the fourth quarter ended Dec 31, 2022 (Q4 FY2022).
Growth was relatively steady, with revenue also coming in higher by 5% at RM2.5 billion.
In a Bursa filing today, the group also announced its first interim dividend of 4 sen per ordinary share, with entitlement date on June 6 and payment date on June 28.
Maxis said that service revenue was contributed by growth in the consumer post-paid sector via Maxis and Hotlink Postpaid, which offset a drop in consumer prepaid revenue.
“Home Connectivity revenue grew on the back of 24,000 fibre net adds quarter-on-quarter, offset slightly by a 5,000 reduction in WBB (wireless broadband) subscriptions as Maxis actively converted existing WBB customers onto fibre,” it said.
Maxis spent RM130 million this quarter for capital expenditure (capex) which it deemed “prudent” as a requirement for 4G network coverage and capacity continues to moderate post 3G sunset.
New possibilities with 5G
On May 3, the Malaysian government announced its decision to focus on achieving 80% 5G coverage of populated areas (CoPA) by end-2023 under Digital Nasional Bhd (DNB), followed by the implementation of 5G under two networks.
Excitement about a second wholesale network was riding high, and subsequently CelcomDigi Bhd terminated the respective agreements of its wholly-owned subsidiaries to subscribe for a 12.5% stake each in DNB.
In October last year, both its subsidiaries had agreed to collectively take up a 65% stake in DNB alongside YTL Communications Sdn Bhd, and Telekom Malaysia Bhd.
Maxis was one of the few telecommunication providers that chose to opt out of the deal.
The group’s quarterly financial report appears to hint that Maxis may be eyeing the second network, referencing the government’s announcement.
“The group is committed to working closely with the industry to accelerate 5G for the nation in line with the government’s digital ambitions,” it said.
The group ooked forward to “playing a more direct role” in the country’s 5G implementation to leverage its “expertise, resources and existing infrastructure”.
Maxis’ 11.8% share price rally since end-February 2023 has already reflected the improved regulatory environment facing mobile network operators (MNO), with 5G moving to a dual wholesale network (DWN) structure, according to CSG-CIMB Securities in a note on May 18.
At the close of trade, Maxis’ share price was up 0.23% or 1 sen at RM4.35, giving it a market capitalisation of RM34.06 billion.
