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Maxis subscribers dropped to 12 million in 3Q15, 4G LTE coverage at 55%

Maxis Berhad (Maxis) announced their Quarter 3 financial results today. As of 3Q15, the Telco has a total of 12 million (11,956) revenue generating subscribers, down from 12,214 in 2Q15.

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There are 8.9 million (8,850) prepaid revenue generating subscribers (down from 9,068 in 2Q15) with an ARPU of RM39 while postpaid revenue generating subscribers is at 2.8 million (2,784 down from 2,796 in 2Q15), with an APRU RM98.

Maxis has 514k MaxisONE Plan subscribers as of Q3 with an ARPU around RM150. The Telco said it added 80,000 new MaxisONE plan subscribers in the quarter.

It also said that MaxisONE Share and MaxisZerolution propositions have good traction however no numbers were revealed.

There are 9 million mobile Internet users, including 1.5 million 4G LTE users with an average usage of 2.3GB a month and 7.2 million prepaid mobile Internet users.

In 3Q15, postpaid users consumed an average 1.8GB a month while prepaid users consumed an average 1.3GB a month.

There are 2.4 million 4G LTE devices detected in the network.

During the quarter, Maxis spent RM359 million in further improving its “high performing network”. 4G LTE coverage now extends to 55% of the population, making Maxis the “market leader with the fastest and widest 4G LTE coverage in the country”. The Telco said it has 95% 4G LTE coverage in key market centres and 60% in all state capitals. The current Maxis network coverage (statistic) are as below:

  • 4G LTE: 55%
  • 3G: 91%
  • 2G: 95%
  • Network Modernisation: 83%

Service revenue for Q3 2015 grew 3.1% from Q2 2015 to RM2,158 million, led by 6% growth in prepaid and 0.7% in postpaid. Compared to Q3 2014, service revenue grew 5.3%. The growth in prepaid revenue was fueled by higher data usage while for postpaid, growth came from high value customers subscribing to MaxisONE plan, Maxis said.

To cater for high data traffic growth, Maxis anticipates that its 2015 capex spend to be in the range of RM1.2 billion to RM1.3 billion.

For the third quarter, Maxis registered an Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) of RM1,111 million and a service revenue EBITDA margin of 51.6% against RM1,110 million and 54.3 % in the previous quarter. Compared to the same quarter in the preceding year, EBITDA was RM1,079 million and service revenue EBITDA margin stood at 53.1 %. This excludes unrealised foreign exchange losses.

Profit After Tax (PAT) for the quarter grew 3.5% to RM509 million against RM492 million recorded in the preceding quarter.  Year-on-year, PAT grew 1.8% against RM500 million recorded in Q3 2014. This is after adjusting for accelerated depreciation due to network modernisation as well as unrealised foreign exchange losses.

Morten Lundal, Maxis CEO, commented, “It was a strong quarter for Maxis. It’s amazing to see how Malaysians just love the Internet and we are working hard to ensure a superior “Always On” data experience. Maxis keeps investing more than anybody in order to provide our customers the best data network with a particular focus on LTE leadership.”

Maxis announced a third interim dividend of 5sen per share.

About Kugan

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