Update Maxis 2Q profit rises 14%, pays 8 sen dividend

Update Maxis 2Q profit rises 14%, pays 8 sen dividend
Business & Markets 2013
Written by Chong Jin Hun of theedgemalaysia.com
Tuesday, 06 August 2013 13:29

KUALA LUMPUR (August 6): Maxis Bhd reported a 14% rise in second quarter net profit from a year earlier as revenue rose.

In a statement to the exchange today, Maxis said net profit came to RM528 million in the second quarter ended June 30, 2013 (2QFY13) versus RM464 million previously. Revenue rose to RM2.29 billion from RM2.21 billion.

First-half (1HFY13) net profit however fell to RM1 billion from RM1.04 billion a year earlier although revenue rose to RM4.62 billion from RM4.45 billion.

"Group revenue grew 4% or RM176 million in the period under review (1HFY13); with positive contributions from all business segments.

"Profit for the period on a comparable basis was lower mainly due to higher net financing costs of RM25 million largely due to the full effects of additional RM1 billion financing that was drawn down in end February last year and increased amortisation cost of RM41 million as a result of more devices placed on contract with subsidies offset by higher EBITDA of RM48 million," Maxis said.

Maxis plans to pay an interim single-tier tax-free dividend of eight sen a share for the quarter in review.

The firm expects a competitive business landscape for the remaining quarters of the year. Maxis said mobile telecommunication network operators have to contend with voice and SMS cannibalisation by data and Internet services.

Maxis said it will leverage on its mobile subscription and network leadership to stay competitive in the market.

"The group remains positive that it is able to leverage on all these building blocks that have been put in place to sustain its momentum for the remaining quarters of 2013," Maxis said.