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Maxis’s First Quarter 2007 results

Maxis Communications Bhd has recorded a higher revenue of RM2.157 billion in its first quarter ended March 31, 2007, from RM1.727 billion in the same period last year.

In a filing to Bursa Malaysia today, the company attributed the two percent rise in revenue to its Indian operations which contributed RM320 million on the back of a higher subscriber base.

Maxis’ subscriber base grew by 1.5 million or 12 percent to 14 million subscribers as at end March 2007, comprising 8.5 million subscribers from the Malaysian operations and 5.5 million subscribers from the Indian operations.

For its operations in Malaysia, Maxis registered a six percent increase in the total subscriber base over the preceeding quarter, due to the various marketing campaigns and plans which helped to push the number of subscribers by 64,000 for postpaid and 401,000 for prepaid.

Maxis posted a higher pre-tax profit of RM765 million in the first quarter, up from RM707 million in corresponding quarter last year.

The group’s earnings before interest, tax and amortisation (EBITDA) of RM1.082 billion improved one percent compared to previous quarter.

However, EBITDA margin declined by 0.2 percent point over the preceeding quarter due to dilutive effect of the lower margins of the Indian operations as its contribution to the group increased.

Maxis said it will continue to strengthen its market position by expanding its reach in terms of network, branding and product proposition while at the same time ensuring that the cost structure is optimised.

On its Indonesian operations, Maxis said the country’s mobile sector still offers high growth prospects with its population of 226 million and a mobile penetration rate of only 33 percent as at end of first quarter 2007.

The group said with its increased equity stake in the Indonesian venture to 95 percent, it will be able to capitalise on the growth potential via a revamped business plan and network roll-out.

Significant investments will be required to support the proposed accelerated roll-out, it said, adding that a strategic partner may be invited into the business.

Barring any unforeseen circumstances, Maxis expects to achieve continuing satisfactory growth for the financial year ending Dec 31, 2007.

“The group’s earnings and borrowings will reflect the investment phase,” it said.-Bernama

About Kugan

Kugan is the founder of MalaysianWireless. He has been observing the mobile industry since 2003. Connect with him on Twitter: @scamboy