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Maxis mobile subscribers dropped to 12.25 million, lost 149k subscribers in 2Q16

Maxis Berhad reported its Second Quarter 2016 (2Q16) financial results on Wednesday.

new-maxis-logo

Maxis performance by the numbers below.

Total Mobile Subscribers

  • 12.25 million mobile subscribers, out of which 11.02 million are revenue generating subscribers
  • Maxis lost 149k revenue generating mobile subscribers in the quarter
  • 276k Wireless Broadband subscriptions (247k revenue generating subscribers). It lost 25k revenue generating wireless broadband subscriptions in the quarter.
  • Higher Home Connection (fibre) subscribers at 133k (vs 126k in 1Q16)

Prepaid Mobile Subscribers

Maxis-2Q16-Hotlink

  • 9.27 million prepaid users
  • Some 8.11 million are revenue generating subscribers
  • While Maxis lost 88k revenue generating subscribers, it said Hotlink Fast is “Contributing to positive trajectory in subscriber acquisition, ARPU and Mobile Internet usage”
  • Prepaid ARPU is at RM34

Postpaid Mobile subscribers

Maxis-2Q16-Postpaid

  • 2.7 million postpaid susbcribers, excluding wireless broadband subscriptions (2.66 million revenue generating subscribers).
  • Despite it lost 36k revenue generating postpaid subscribers, Maxis said “Subscription base stabilising since launch of upgraded MaxisONE plan plus high attachment rate of share lines”
  • Postpaid ARPU at RM101
  • There are 1.29 million MaxisONE plan subscriptions with a lower ARPU of RM143/month (1Q16: RM150)

Mobile Internet

Maxis-2Q16-Network-Traffic-App

  • 8.4 million mobile Internet users in 2Q16 (vs 8.5 million users in 1Q16)
  • 70% of total Maxis subscribers are mobile Internet users
  • Postpaid users consumed an average 2.95GB data in Q2
  • 80% of Maxis postpaid subscribers are smartphone users
  • Prepaid users consumed an average 2GB data in Q2
  • 68% of Maxis prepaid subscribers are smartphone users
  • There are 3.6 million 4G LTE devices in the network
  • Maxis 4G LTE users consume about 3.7GB a month
  • The most used application in the network is Youtube (31%), followed by Facebook (22%), Browsing (7%), Instagram (7%)
  • Maxis said that mobile Internet usage increase 80% after free data upgrade were given in April 2016

Maxis Mobile Network

  • 4G LTE population coverage now at 87%, measured based on -110dBm quality criteria. Its 80% coverage if signal measured at -98dBm
  • 4G LTE coverage now available in more than 220 cities and town
  • 96% 2G human population coverage
  • 94% 3G human population coverage
  • 93% of the mobile network have been modernised

Maxis Service Centres Nationwide

  • Over 50 Maxis Centre
  • Over 200 Maxis exclusive partners
  • Over 26k non-Maxis exclusive partners

Maxis Key Financial Highlights for Q2 2016:

  • Service revenue dropped slightly to RM2,055 million against RM2,122 million in 1Q16
  • Stable postpaid revenue at RM975 million against RM992 million in 1Q16, supported by over 1.3 million MaxisONE plan subscriptions
  • Prepaid revenue 5.2% lower at RM959 million against RM1,012 million in Q2 last year. Towards end of Q2, “prepaid acquisition momentum is improving with the introduction of Hotlink FAST”
  • Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) declined marginally to RM1,050 million from RM1,213 million in 1Q16
  • Profit After Tax (PAT) up 9.0% to RM483 million from RM443 million in the same period last year
  • Declared a second interim dividend of five sen net per share

Year-on-Year (YoY) – H1 2016 vs H1 2015

  • Service revenue at RM4,177 million against RM4,211 million a year ago
  • EBITDA improved 5.4% to RM2,263 million from RM2,148 million
  • PAT up 17.3% to RM1,003 million from RM855 million

Comment by Morten Lundal, Chief Executive Officer, Maxis Berhad

“This wasn’t our easiest quarter, where competition tried to improve subscriber market share by lowering prices.  After some initial market turbulence, we saw at the closing of the quarter our results improve and we managed to keep our revenue and profit at similar levels compared to last year.

We witnessed a data explosion in the last three to five months. People are using data and video much more than before, and just in the last 3 months, average mobile internet usage has grown from 1.7GB to 2.5GB, which is tremendous. For Maxis, it has always been about enabling our customers to enjoy their digital experiences in a completely worry-free way. In April, we upgraded over a million customers with a lot more data. That was the largest auto-upgrade we’ve ever done at Maxis and largest ever in Malaysia. For our Internet hungry prepaid customers, we offered a very attractive proposition in Hotlink FAST that gives customers Free 2GB of 4G Internet every weekend for life.

But it’s not just about giving more data – what’s important is to have your large data allowance on a quality network. Maxis invested over RM1.3 billion last year, and we’re going to invest the same amount this year, which is substantially more than other industry players. We are particularly proud of our industry leading LTE network, which has reached 80% of the population, covering more than 220 cities and towns.

We are also progressing well in our ambition to be a fully digitalised Maxis where most of our interactions with our customers are digital, we move from products to solutions and we are fully digitalised in the way we operate as a company.”

About Kugan

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