Maxis Berhad reported its Fourth Quarter 2016 (4Q16) financial results last week.
Maxis performance by the numbers below.
Total Mobile Subscribers
- 11.93 million Maxis mobile subscribers as of 4Q16, out of which 10.85 million are revenue generating subscribers. The Telco had 12.05 million subscribers in 3Q16.
- It lost some 768k subscribers in the past year (728k revenue generating subscribers), it had 12.69 million subscribers as of 4Q15.
- Wireless broadband subscribers also dropped to 208k in 4Q16 from 243k subscribers in 3Q16. Maxis had 325k wireless broadband subscribers as of 4Q15.
- Higher Home Connection (fibre) subscribers at 146k (vs 139k in 3Q16).
Prepaid Mobile Subscribers
- 8.96 million prepaid subscribers in 4Q16 down from 9.09 million it had in 3Q16. It lost 125k subscribers in 4Q16.
- Some 7.95 million are revenue generating subscribers (RGS).
- Maxis lost 607k prepaid subscribers in the past year. It had 9.57 million subscribers as of 4Q15.
- Prepaid ARPU was RM1 higher at RM37.
- Despite the dropped in prepaid subscribers, Maxis said there are now more Hotlink FAST users at 1.5 million with an APRU of RM41 (ARPU unchanged since the previous quarter).
Postpaid Mobile Subscribers
- There are now slightly higher 2.97 million postpaid subscribers (2.71 million revenue generating), excluding wireless broadband subscriptions. It had 2.96 million (2.68 million RGS) as of 3Q16.
- The Telco lost some 161k postpaid subscribers in the past year. It had 3.13 million prepaid subscribers as of 4Q15.
- Postpaid ARPU is now higher at RM104 (vs RM100 in 3Q16).
- There are 1.66 million MaxisONE plan subscriptions in 4Q16 compared to 1.49 million as of 3Q16. Despite Maxis added more MaxisONE subscribers, ARPU continues to drop, now at RM127 (vs RM129 in 3Q16, RM143 in 2Q16 & RM150 in 1Q16).
- 4G LTE users consumed an average 5.89GB a month
- Postpaid users consumed an average 4.93GB a month
- Prepaid users consumed an average 3.27GB a month
- 82% of postpaid subscribers are smartphone users
- 74% of prepaid subscribers are smartphone users
- 4.7 million LTE devices in the network
Maxis Mobile Network
- For the year 2016, Maxis said it “invested a total of RM1.2 billion in capital expenditure primarily to increase coverage and capacity, particularly on our 4G network to deliver the best network experience”.
- 4G LTE population coverage remains at 88%, measured based on -110dBm quality criteria. 81% 4G LTE coverage (since 2Q16) if signal measured at -98dBm.
- Maxis claims that its 4G LTE network offers an average download speed of 27Mbps.
For the financial results ending December 2016, Maxis reported to Bursa Malaysia:
Q4, Year-on-year (YoY) – Q4 2016 vs Q4 2015
- Service revenues grew 0.5% to RM2,165 million with stable postpaid and prepaid performance
- Prepaid revenues sustained at RM1,024 million with Mobile Internet driving the momentum
- Postpaid posted revenues of RM1,004 million with strong acquisition momentum driven by MaxisONE Plan and Zerolution
- Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) grew 5.5% to RM1,183 million
- Profit After Tax (PAT) up 14.0% to RM544 million
Full year, Year-on-Year (YoY) – FY 2016 vs FY 2015
- Service revenue declined 0.8% to RM8,455 million
- EBITDA improved 1.3% to RM4,484 million
- PAT improved 0.2% to RM1,963
Since 2014, Maxis has been working on unmatched customer experience. The Telco appears to be still working on it in 2017. Moving forward it will also:
– Strengthen core customer propositions through moving from product to solutions and going all-out digital
– Keep network advantage through leveraging a scalable capacity design and to focus on indoor experience
Morten Lundal, Chief Executive Officer, Maxis Berhad said, “2016 was a challenging yet 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. Our customers now enjoy a combination of lots of data at affordable prices on the best network, and we’re proud to record all time high customer satisfaction. All in all, 2016 was a year of good progress with positive momentum heading into 2017.”