Maxis reported its Second Quarter 2018 (2Q18) financial result yesterday. As of June 2018, the Telco now has 9.86 million revenue generating mobile subscribers (market definition: 10.9 million mobile subscribers), up from 9.85 million in 1Q18.
Maxis revenue generating subscribers (RGS) are defined as active line subscriptions that excludes those without revenue generating activities for more than 30 days.
Maxis reported that there are now 6.75 million Hotlink Prepaid revenue generating subscribers (market definition: 7.72 million) with an ARPU of RM42/month (vs RM41 in 1Q18). Maxis lost some 39k Hotlink prepaid customers in 2Q18. It had 6.79 million subscribers in 1Q18.
Some 81% of Maxis Prepaid subscribers are smartphone users. Prepaid subscribers consumed an average 8.2GB a month in 2Q18 (6.7GB in 1Q18) and 128 voice minutes on average a month.
On Maxis Postpaid, there are now 2.97 million revenue generating subscribers (market definition: 3.02 million) out of which 2.09 million subscribers are on MaxisONE plans. The Telco added 58k new postpaid subscribers in the recent quarter from 2.91 million it had in 1Q18.
Maxis Postpaid customers have an APRU of RM94/month (vs RM92 in 1Q18). 87% of Maxis Postpaid subscribers are smartphone users, consuming an average 11.2GB a month between April, May and June 2018 (9.9GB in 1Q18).
There are now 8.2 million mobile Internet users from 8.1 million it had in 1Q18. Maxis Fibre customer base are now higher at 194k vs 184k in 1Q18.
Maxis claims that its 4G LTE network now covers 92% of the human population in the country.
Highlights, according to Maxis: Quarter-on-Quarter (QoQ) – Q2 2018 vs Q1 2018
| Q2 2018 RM’m |
Q1 2018 RM’m |
QoQ % |
|
| Service revenue | 2,013 | 1,980 | 1.7 |
| Normalised EBITDA | 1,007 | 1,020 | (1.3) |
| Normalised PAT | 480 | 510 | (5.9) |
| Capex | 212 | 107 |
- Service revenue grew by 1.7% to RM2,013 million from RM1,980 million last quarter, driven by strong growth momentum in postpaid as we innovate family-centric propositions.
- Normalised EBITDA is at RM1,007 million, slightly lower from RM1,020 million last quarter due to realised forex losses and higher marketing expenses.
- EBITDA margin (on service revenue) at a stable 50.0%.
- Normalised PAT declined to RM480 million contributed by a higher depreciation expense.
- Postpaid revenue grew 2.4% QoQ to RM1,009 million from RM985 million last quarter, maintaining our strong leadership in this segment with a stable ARPU of RM94. The steady growth of our subscription base stemmed from growth in shared lines as we continue to innovate to create value within family mobile plans. Our flagship MaxisONE Plan continued to attract customers with innovative device offerings, adding 67k new subscribers in Q2.
- Continued strong growth in Home Fibre, with 5.4% revenue increase in Q2.
- Despite overall softening of the market, intense price competition, SIM consolidation and migration to postpaid, Prepaid revenue stabilised with a 0.6% growth to RM854 million QoQ, with a slowing decline in subscriber base. These were attributed to well-executed marketing initiatives and effective use of data analytics, leading to solid Mobile Internet (MI) revenue growth. Prepaid ARPU meanwhile remains stable at RM42 per month.
- Declared a second interim dividend of five sen per share.
Maxis Berhad’s Interim Chief Executive Officer, Robert Nason said, “Our strong commitment and ambition to provide innovative, quality products and experiences have delivered steady results for Q2 2018. We are happy that we are seeing strong growth in postpaid and good progress in the recovery of our prepaid business. We will continue to focus on operational efficiencies and invest in sustaining a superior network. All in all, we feel upbeat about what’s in store for our customers as we create more quality digital experiences for them.”
