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Mobile data drives Maxis 2013 Q2 financials

AvantiKumar | Aug. 13, 2013
Malaysian telco's chairman says second quarter net profit has climbed 11.3% to US$164M driven by non-voice business and cost management.

Photo 2 - Maxis modified 

Photo - (From left)  Nasution Mohamed, Maxis Joint Chief Operating Officer; YM Raja Tan Sri Dato' Seri Arshad Raja Tun Uda, Maxis Chairman; and Suren J Amarasekera, Maxis Joint Chief Operating Officer.


Maxis has announced a second quarter 2013 net profit of 11.3 percent to RM530 million [US$164 million] up from quarter one's RM476 million [US147.28 million], driven mainly by mobile Internet usage.

Voice revenue has grown by 7.5 percent year-on-year and contributed 47.7 percent of mobile revenue for the first half this year [ended 30 June 2013], said Maxis chairman YM Raja Tan Sri Dato' Seri Arshad Raja Tun Uda during the announcement.

The strong growth in data has helped to mitigate to an extent, the declining voice and SMS revenue, said Arshad Raja.

Together with cost management, Maxis has recorded an EBITDA [earnings before interest, taxes, depreciation and amortisation] margin of 50.8 percent, 3.8 percent higher than that of the preceding quarter.

Maxis has delivered its dividend commitment with a second interim dividend of eight sen [US$0.02] per share amounting to RM600 million [US$185.64 million], he said, adding that the company has expanded its 4G LTE service beyond Klang Valley to Penang and Johor Bahru and the first to provide 4G LTE in East Malaysia, starting with Kuching and Kota Kinabalu.

Arshad Raja said that during the quarter, Maxis also introduced location-based advertising service, "the first in Malaysia, and Opera Mini data plan for customers to enjoy unlimited Internet browsing. The launch of these innovative products and services underlined Maxis' continued leadership in the data space."

The data business

"We are pleased to note that our market initiatives are making steady progress and continuing to gain momentum," he said. "Our performance this quarter was fuelled by higher mobile Internet usage from the launch of innovative data products. Smartphone use continued to increase among our customers where we have 6.5 million of our 12.4 million subscription base (excluding broadband dongle subscribers) using smartphones, representing a penetration rate of 52 percent."

"As at end of June 2013, we had close to 250,000 subscribers with 4G LTE devices, and we are on track to expand 4G coverage to reach 18 percent of the population by end of the year," said Raja Arshad  "We will  grow the eco-system with more 4G smart devices, exciting content and services for an even richer digital experience for customers."

"Our focus for 2013 remains to continue building on our leadership in the data business, put our customers first in everything we do and be the most efficient company. We will drive growth in our core business while investing in future digital services with continued investment in our infrastructure to meet ever growing customer demand for data access and higher speeds," he said.


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