KUALA LUMPUR: Maxis Bhd net profit for the first quarter ended March 31, 2011 dipped 2.35% to RM539 million from RM552 million a year earlier, due mainly to higher net finance costs due to additional borrowings.
Revenue for the quarter was RM2.13 billion compared to RM2.15 billion in 2010. Earnings per share was 7.20 sen while net assets per share was RM1.15.
Maxis declared a first interim single-tier tax exempt dividend of 8 sen per share in respect of the financial year ending Dec 31, 2011, to be paid on June 30, 2011.
In a filing Tuesday, May 31, Maxis said the decrease in revenue was mainly due to reduction in voice, interconnect and hubbing revenue, partially offset by increase in non-voice revenue generated from the mobile services.
The decrease in interconnect revenue was due to reduction in mobile and fixed termination rates since July last year whilst the decline in hubbing revenue was in line with the planned scale down in hubbing business, it said.
The growth in non-voice revenue was primarily due to increase in Advanced Data Services and wireless broadband, it said.
Maxis said its earnings before interest, tax, depreciation and amortisation (EBITDA) grew by 1% or RM8 million on the back of lower direct and operating expenses, partly offset by lower revenue.
The resultant EBITDA margin increased by 0.8 percentage point from the previous period largely due to the decrease in interconnect expenses partly offset by higher network costs and staff costs coupled with lower revenue, it said.
Commenting on its prospects, Maxis said intense competition among existing players, as well as the emergence of many new entrants in the Malaysian telecommunications industry, including those in the broadband sector, had contributed to the increasingly challenging operating environment, with increasing pressure on revenue and margins.
The next phase of growth in the industry would remain largely driven by demand for broadband and internet access services, with increasing adoption of smartphones and tablets, it said.
'In preparation for this, and with the objective of enhancing customer experience, we have and will continue to invest prudently in the growth and ongoing transformation of our network, build on the existing range of passive infrastructure-sharing already undertaken, and continue to seed devices in the market to encourage early adoption of data usage and bring forward data revenues.
'The group will also continue to maintain its discipline and focus on operating efficiency and cost management to maintain current levels of profitability and cashflows,' it said.
Maxis said hat barring any unforeseen circumstances, it expects the performance of the group for the financial year ending Dec 31, 2011 to be satisfactory.
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Revenue for the quarter was RM2.13 billion compared to RM2.15 billion in 2010. Earnings per share was 7.20 sen while net assets per share was RM1.15.
Maxis declared a first interim single-tier tax exempt dividend of 8 sen per share in respect of the financial year ending Dec 31, 2011, to be paid on June 30, 2011.
In a filing Tuesday, May 31, Maxis said the decrease in revenue was mainly due to reduction in voice, interconnect and hubbing revenue, partially offset by increase in non-voice revenue generated from the mobile services.
The decrease in interconnect revenue was due to reduction in mobile and fixed termination rates since July last year whilst the decline in hubbing revenue was in line with the planned scale down in hubbing business, it said.
The growth in non-voice revenue was primarily due to increase in Advanced Data Services and wireless broadband, it said.
Maxis said its earnings before interest, tax, depreciation and amortisation (EBITDA) grew by 1% or RM8 million on the back of lower direct and operating expenses, partly offset by lower revenue.
The resultant EBITDA margin increased by 0.8 percentage point from the previous period largely due to the decrease in interconnect expenses partly offset by higher network costs and staff costs coupled with lower revenue, it said.
Commenting on its prospects, Maxis said intense competition among existing players, as well as the emergence of many new entrants in the Malaysian telecommunications industry, including those in the broadband sector, had contributed to the increasingly challenging operating environment, with increasing pressure on revenue and margins.
The next phase of growth in the industry would remain largely driven by demand for broadband and internet access services, with increasing adoption of smartphones and tablets, it said.
'In preparation for this, and with the objective of enhancing customer experience, we have and will continue to invest prudently in the growth and ongoing transformation of our network, build on the existing range of passive infrastructure-sharing already undertaken, and continue to seed devices in the market to encourage early adoption of data usage and bring forward data revenues.
'The group will also continue to maintain its discipline and focus on operating efficiency and cost management to maintain current levels of profitability and cashflows,' it said.
Maxis said hat barring any unforeseen circumstances, it expects the performance of the group for the financial year ending Dec 31, 2011 to be satisfactory.
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