Highlight Maxis 1Q net profit rises 1.9% y-o-y, announces 8 sen dividend

by **Cals** Wed 07 May 2014, 22:50

Highlight Maxis 1Q net profit rises 1.9% y-o-y, announces 8 sen dividend

Business & Markets 2014

Written by Ahmad Naqib Idris Adzman Shah of theedgemalaysia.com

Wednesday, 07 May 2014 18:04

KUALA LUMPUR (May 7): Maxis Bhd reported net profit of RM484 million for its first quarter ended March 31, 2014, rising 1.9% from RM475.0 million in the previous year’s corresponding quarter.

However, revenue for 1QFY14 fell to RM2.12 billion from RM2.33 billion in 1QFY13.

The group announced an interim single-tier tax-exempt dividend of 8 sen per share, with the entitlement date on May 5, 2014, payable on June 27, 2014.

According to the group’s statement to the exchange, the lower revenue was due to lower voice and SMS usage.

“Mobile internet revenue, however, grew by 12.4% year-on-year to RM524 million despite the adverse revenue impact from the elimination of pay per use charges,” said Maxis.

The group said it had invested RM118 million in capital expenditure during the quarter for network modernisation, capacity and quality improvements and focused 4G coverage expansion.

“Q1 was as expected a quarter with full operational focus on our transformation initiatives that will keep us busy throughout 2014.

“We have set the bar really high and we are diligently going through the list of things to improve,” said Morten Lundal, CEO of Maxis.

Going forward, the group aims to maintain its revenue. It will continue to shift towards data revenue, rather than traditional voice and messaging revenues.

“For the financial year 2014, the group expects its service revenue to be similar to financial year 2013, as the industry is fast maturing and as the group undergoes a transformation to deliver the best mobile internet access and an unmatched customer experience,” said the major mobile communications group.