Highlight Maxis 2Q profit falls 16% to RM446m as voice, sms revenue decline

by **Cals** Wed 23 Jul 2014, 01:32

Highlight Maxis 2Q profit falls 16% to RM446m as voice, sms revenue decline

Business & Markets 2014

Written by Chong Jin Hun of theedgemalaysia.com

Tuesday, 22 July 2014 13:50

KUALA LUMPUR (July 22): Maxis Bhd reported a 16% fall in second quarter net profit from a year earlier as less voice and sms usage dragged the mobile telecommunication network operator's revenue lower.

Higher administrative, network operation, and finance expenses had also curbed profit, Maxis told the bourse today. Maxis said net profit fell to RM446 million in the second quarter ended June 30, 2014 (2QFY14) from RM528 million.

Revenue declined to RM2.08 billion from RM2.29 billion.

Cumulative first-half (1HFY14) net profit dropped to RM930 million from RM1 billion a year earlier. Revenue was lower at RM4.2 bllion versus RM4.62 billion.

"In the period under review (1HFY14), the decline in service revenue was primarily driven by lower voice and SMS usage.

"Mobile Internet revenue, however, grew by 13.4% year-on-year to RM1,090 million despite the adverse revenue impact from the elimination of pay per use charges," Maxis said.

Despite posting lower profit, Maxis plans to pay a dividend of eight sen a share for 2QFY14.

Looking ahead, Maxis said mobile Internet would be a crucial revenue growth driver for the firm. This would be in line with higher Internet usage.

However, a fast-maturing telecomunication sector is seen curbing Maxis' profitability.

"For the financial year 2014, taking into account that the industry is fast maturing and as the group continues with its transformation and market initiatives to deliver the best mobile Internet access and an unmatched customer experience, the group expects its service revenue to be slightly below that of the preceding financial year, with similar EBITDA margin," Maxis said.