MAXIS RINGS UP RM56M NET PROFIT
Firm says lower earnings due to charge for accelerated depreciation, among others
MAXIS Bhd’s net profit dropped 76 per cent to RM56 million in the fourth quarter ended Dec 31 last year from RM233 million a year ago.
The decline in net profit was due to a RM231 million charge for accelerated depreciation and assets written off, for certain telecommunication equipment and software, and tax settlement of RM73 million in the fourth quarter, said Maxis in a filing to Bursa Malaysia.
However, group revenue for the quarter rose 7.5 per cent to RM2.74 billion from RM2.55 billion previously, contributed by growth across its consumer and enterprise businesses.
In a filing with Bursa Malaysia, Maxis said the lower profit was in line with the revision in the Mandatory Standard on Access Pricing, promoting affordable connectivity for all.
The company registered a lower earnings per share of 0.70 sen for the quarter under review compared to the 3.0 sen in the fourth quarter of 2022.
Maxis declared an interim dividend of four sen per share, bringing the full-year dividend to 16 sen per share.
For the full year, the company’s net profit stood at RM993 million against RM1.15 billion previously, while revenue rose to RM10.18 billion from RM9.79 billion in 2022.
According to Maxis, it saw robust growth across its consumer and enterprise businesses, underpinned by its strategy to focus on its core competencies as the leading integrated telecommunications provider.
Maxis’ consumer business grew 3.7 per cent, surpassing the RM7 billion service revenue mark for the year.
Postpaid revenue increased 7.5 per cent year-on-year in tandem with subscriber growth.
Since introducing its 5G plans in August last year, the company has expanded 5G offerings across all its mobile plans to deliver greater value.
Home broadband subscribers grew to 750,000 households, supported by strong fibre broadband uptake.
The enterprise business’ overall revenue grew 6.4 per cent due to growth in all product categories, including mobile, fixed connectivity and enterprise solutions, contributed by contract wins.
As an integrated telecommunication company, Maxis said it continued to meet the connectivity and digital needs of enterprises of all sizes.
It noted that it had managed capital expenditure (capex) prudently while maintaining operational and service excellence, with RM813 million in capex invested during the year.
Maxis chief executive officer Goh Seow Eng said: “We will continue to build upon our solid foundation as the leading integrated telecommunications provider, ensuring we stay laserfocused on providing the best customer experience.”