Maxis Berhad announced its Second Quarter (2Q22) financial results late last month. The 4G mobile network operator has a subscriber base of 11.77 million, up from 11.64 million subscriptions it had in 1Q22.
For the period between April, May and June 2022, the Telecommunications company said it added 127,000 new mobile subscriptions to its network.
Hotlink prepaid subscriber base stood at 7.15 million, up by 57,000 in 2Q22, from 7.09 million in 1Q22. Maxis said one of the reason for the growth in prepaid subscriptions was due to Hotlink being the preferred choice of foreign workers and tourists.
Maxis added 74,000 new postpaid subscriptions in 2Q22 (including M2M), with the subscription base now at 4.4 million, up from 4.32 million in 1Q22.
For wireless broadband subscriptions, some 4,000 customers terminated their service with Maxis in 2Q22, bringing the total number of subscriber base to 220,000.
There were 545,000 Home fibre broadband subscriptions as of 2Q22. These include 25,000 customers who signed up for the service between April to June 2022.
APRU for Prepaid was up by RM1.6 to RM31.8 meanwhile Postpaid ARPU (excluding M2M) was RM72.7 (+RM0.2). APRU for Home Fibre subscriptions was RM108.3 (+RM0.5)
Maxis prepaid customers consumed an average data of 23.2GB in 2Q22. Internet usage of postpaid customers was 4.7GB more than prepaid customers, at 27.9GB.
When it comes to revenue generating subscriptions (RGS), Maxis has 10.3 million mobile subscriptions (+158k, 10.14 million in 1Q22) including 5.81 million prepaid (+93k, 5.72 million in 1Q22), 4.28 million postpaid (+66k, 4.21 million in 2Q22) and 206k (-1k, 207k in 1Q22) wireless broadband users.
Maxis revenue generating subscribers (RGS) are defined as active line subscriptions (postpaid and prepaid) that excludes those without revenue generating activities for more than 30 days.
The network operator did not share any specific details regarding its latest 4G coverage statistic or the network improvements it made in 2Q22. However it did say that all its 3G assets are now fully depreciated following the 3G network shut down in 2021.
Maxis claims it has the largest fiberised tower and base station footprint, “with over 92% of its base station directly connected by fibre or a single hop microwave system to fibre,”
Q2 financial highlights Year-on-Year – Q2 2022 vs Q2 2021, according to Maxis
- Service Revenue increased to RM2,084 million, up 4.3%, owing to solid contributions from both its Consumer and Enterprise Businesses
- Consumer Business recorded growth across all segments, bringing its revenue to RM1,698 million, up by 4.4%.
- Subscribers for its Postpaid segment (Maxis Postpaid & Hotlink Postpaid) continued to increase, recording a healthy 7.5% growth, bringing the total number of postpaid subscriptions to 3.2 million
- With borders reopening leading to the influx of tourists and foreign workers, Prepaid was resilient with Hotlink Prepaid Unlimited and Hotlink Prepaid Pantas offerings proving to be popular. The segment also had the highest ARPU in 18 months, at RM39.10, due to increased internet spend encouraged by the introduction of new internet passes of HotlinkMU.
- Home Connectivity was up by 18.1%, leading to a 19.4% growth in revenue. Home connections increased by 3.7% QoQ, translating into 23k additional connections for the quarter, bringing the total Maxis home fiber connections to 638k. This is attributable to a combined success of Maxis’ strong distribution channel strategy and marketing efforts.
- Enterprise Business continued its upwards momentum, delivering RM386 million in revenue, up 4.0%, leveraging its strength in mobile, while its growing fixed and solutions segment yielded favorable results with a growth of 6.9%. With Enterprise Business Registration Numbers (BRNs) up 4.0% YoY, it provided Maxis the opportunity for future revenue uplift.
- EBITDA improved to RM1,014 million, up 0.8% YoY thanks to effective cost management efforts despite various challenges including higher device costs under successful postpaid contracting, higher costs for network expansion as well as the impairment loss of accounts receivable. The return of international travel also saw a partial recovery in international roaming, contributing to EBITDA growth.
- Profit after Tax (PAT) was healthy at RM329 million with the higher EBITDA, although dipping by 8.6% YoY due to higher depreciation and amortization costs from revision of spectrum rights’ useful life as well as a one-off increase in corporate tax rate to 33% (Prosperity Tax).
- CAPEX for the quarter was at RM241 million, up 33.9% YoY with the company continuing its heavy investments to deliver the best converged network performance and customer experience, boosting its capacity to support the nation’s digitalisation agenda. Contributions to JENDELA’s Universal Service Provision (USP) fund was recorded at about RM250 million in the first half of 2022 alone.
- Operating free cash flow (OFCF) went up by a substantial 40.3% YoY to land at RM1,174 million on the back of the company’s solid capital management initiatives.
Gökhan Ogut, CEO of Maxis said, “Our solid performance across all segments underlines our sharp focus on our strategy and agility, and we are well-positioned for continued growth in a rapidly changing and competitive telco landscape. We are focused on continuously improving our converged network performance and leveraging our strong talent pool in striving to deliver the best innovation and services to our customers.”
Maxis declared an interim dividend of 5 sen net per share for the quarter.