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Maxis Profit Declines in 1Q17, Mobile Subscribers continues to drop

Maxis reported its First Quarter 2017 (1Q17) financial result last Thursday. Its mobile subscribers continues to drop since Quarter 3, 2015. Maxis now has 10.67 million revenue generating subscribers, as of 1Q17. It lost 178K subscribers in the latest quarter.

Maxis Mobile Subscribers 1Q15 to 1Q17

Maxis revenue generating subscribers are defined as active line subscriptions that excludes those without revenue generating activities for more than 30 days.

There are now 7.75 million prepaid and 2.74 million postpaid revenue generating subscribers. Out of these numbers, 1.74 million are using Hotlink Fast prepaid and 1.78 million are on the MaxisONE postpaid plan.

Mobile Internet users dropped to 8.6 million, from 8.7 million it had in 4Q16.

Maxis added 32k postpaid subscribers in the quarter while some 192k Hotlink prepaid subscribers ported to another Telco, terminated or had no activity on their account.

In terms of ARPU, it reported RM102 for postpaid and RM42 for prepaid. MaxisOne plan ARPU has dropped from RM153 from a year ago to RM121, as of 1Q17.

77% of prepaid and 83% of its postpaid base are smartphone users. Maxis postpaid subscribers uses an average 6.2GB a month while its 3.7GB/month for prepaid. There are 5.2 million 4G LTE devices in the network.

Home Connection Fibre subscriber base are now higher at 153k compared to 146k subscribers in 4Q16.

As for the Maxis network, 4G LTE population coverage now stands at 82%, measured at -98dBm.

For the 1st quarter 2017, Normalised profit after tax (PAT) declined -6.3% to RM510 million (excludes RM5 million unrealised forex losses) from RM544 million in 4Q16.

Year-on-Year (yoy) – Q1 2017 vs Q1 2016, according to Maxis:

  • Stable service revenue at RM2,129 million against RM2,122 million a year ago, supported by strong average revenue per user (ARPU)
  • Sustained postpaid and prepaid momentum in a very price-focused market
    • Postpaid revenue at RM989 million against RM997 million a year ago, with a solid base of nearly 1.8 million MaxisONE customers with high monthly ARPU of RM121. Added 826k new MaxisONE subscriptions
    • Prepaid revenue at RM1,005 million against RM1,008 million in Q1 last year with continued good traction on mobile Internet ARPU
  • Investments for future efficiencies and one-time adjustments impacted earnings before interest, tax, depreciation and amortisation (EBITDA). Normalised EBITDA was RM1,118 million as compared to RM1,156 million last year. Strong EBITDA margin (on service revenue) at 52.5%
  • Normalised profit after tax (PAT) grew 5.4% to RM510 million from RM484 million
  • Declared a first interim dividend of five sen per share

Morten Lundal, Chief Executive Officer, Maxis Berhad said “It was a good and steady quarter for Maxis with positive underlying momentum. Data volume keeps growing and we are matching the demand with a high performing network experience. This is a very important year for us, where we will be going all out digital to create unmatched customer experiences.”

[Source]– Maxis

About Kugan

Kugan is the founder of MalaysianWireless. He has been observing the mobile industry since 2003. Connect with him on Twitter: @scamboy
  • Nothing mysterious given at how bad the service these days. Unstable network with intermittent connectivity is the new norm for Maxis. To my surprise, even in a prime neighborhood within Johor Bahru, little effort is being made by Maxis to ensure stable network connectivity and people here have to bear with EDGE connection in-spite claimed to the contrary in the website citing 4G LTE network coverage for the neighborhood. What’s worse, when complaints were lodged to Maxis, the feedback is such that no plan on their side at the moment is being made to ensure better coverage, and stable network performance within the area! Come on, if you can’t even provide a stable connection within a prime neighborhood in the city center, it is safe to presume that it would be much worse for those living in the outskirts of the city! Now, why would we pay a huge premium hefty fee monthly when the service is this bad? There is no god damn reason to do so and to my surprise, even Digi and UMobile could provide stable network coverage here!