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Data drives Maxis profit

AvantiKumar | May 12, 2014
Malaysia's Maxis records a Profit After Tax of US$151.25 million for the first quarter ended 31 March 2014, a 2.5 percent increase over the same period last year.

Net profit announcement Maxis - mod 

Photo caption: (From left) Maxis executives: Morten Lundal, Chief Executive Officer; Nasution Mohamed, Chief Financial & Strategy Officer; and Dushyan Vaithiyanathan, Head of Consumer Business.

 

Data usage has fuelled Malaysian telecom Maxis's Profit after Tax (PAT) of RM488 million [US$151.25 million] for the first quarter ended 31 March 2014, a 2.5 percent increase from RM476 million [US$147.44 million] delivered in the same period last year.

Maxis chief executive officer Morten Lundal said data usage has continued to increase while voice and SMS usage declined. "Q1 was as expected a quarter with full operational focus on our transformation initiatives that will keep us busy throughout 2014."

"We have set the bar really high and we are diligently going through the list of things to improve. We are satisfied that we have improved profitability further in Q1, but what we really are focused on is to improve our capabilities further, so we can provide what we and our customers define as a truly 'great experience.'"

Maxis registered a revenue of RM2,119 million [US$656.34 million] for the quarter. Mobile Internet remained as key contributor and contributed 27 percent of mobile revenue.

During the quarter, mobile revenue was impacted by intentional elimination and significant reduction of non-sustainable revenue from pay per use charges related to data roaming and prepaid data, according to a statement by Maxis. This clean-up was necessary to ensure customers have worry-free experience whenever they are with Maxis.
 
For the quarter under review, Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA) Margin improved by 2.4 percentage points to 50.6 percent compared to the same period last year while the overall EBITDA stood at RM1,073 million [US$332.35 million].
 
Maxis continued to invest in its network with RM118 million [US$36.55 million] capital expenditure in this first quarter for network modernisation, capacity and quality improvements as well as focused 4G coverage expansion, Lundal said.

He added that these initiatives throughout 2014 will ensure that Maxis has IT platforms and network that are built to continuously provide the best customer experience.

 

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