Tuesday, November 30, 2010

Maxis 3Q net profit RM601m on revenue of RM2.2b

KUALA LUMPUR: Maxis Bhd registered net profit of RM601 million on the back of RM2.21 billion in revenue for the third quarter ended Sept 30 and expects wireless broadband, Internet access, non-voice services to drive revenue.

It said on Tuesday, Nov 30 pre-tax profit at RM815 million was 13% or RM95 million than the preceding quarter ended June 30 (2QFY10). It declared dividend of eight sen a share.

Maxis said the higher pre-tax profit was due to higher earnings before interest, tax, depreciation and amortisation (EBITDA) and lower finance costs partly offset by higher depreciation charge

'Consequently, profit for the period was higher at RM601 million compared to RM532 million in the preceding quarter (2QFY10),' it said.

Maxis said revenue grew 1% on-quarter revenue or RM25 million, underpinned by increase in non-voice revenue from wireless broadband, advance data services (ADS), and short message service (SMS) business.

'Wireless broadband revenue grew by 36% or RM28 million to RM106 million on increased subscriptions from 448,000 as at'' June 30, 2010 to 524,000 as at Sept 30, 2010,' it said.

However, its monthly postpaid and prepaid average revenue per user (ARPU) were impacted by the reduction in termination rates and lower domestic usage from higher take up of lower priced plans. Wireless broadband ARPU was relatively stable at RM70.

In 3QFY10, the group's EBITDA margin recovered from 46.9%'' -- as 2Q was largely impacted by cost incurred for the 2010 FIFA World Cup sponsorship -- to 51.4% with EBITDA improving significantly by RM110 million or 11% on the back of higher revenue and lower operating expenses.

'The lower operating expenses were primarily due to lower broadband modem and device expenses coupled with cost savings from cost management initiatives in the current quarter,' it said.


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