Maxis 1H profit grows just 0.7%

Dylan Bushell-Embling
26 Aug 2011
Daily News

Malaysia's Maxis has reported near-flat profit for the first half of the year, despite strong gains in wireless broadband revenue.

The market leading operator grew its profit for the half just 0.7% to 1.09 billion ringgits ($364.7 million).

Revenue fell 1.2% to 4.29 billion ringgits, but revenue from operations excluding its International Gateway Services – which is now being scaled down due to low margins - grew 2.1% to 4.21 billion ringgits. Ebitda margin also improved to 51.2% from 48.6% a year earlier.

By contrast, non-voice revenue grew 20% to 1.7 billion. Internet and data services accounted for 58% of Maxis' non-voice revenue during the period.

Wireless broadband is leading the non-voice charge, with Maxis recording 72% year-on-year revenue growth from the segment in the first half. Wireless broadband subscribers grew 40% over the same time-frame.

The company ended the period with around 12.8 million subscribers, including 7.7 million mobile internet users.

Mais CEO Sandip Das lauded the results, stating that they “have to be placed in context of our having to operate in a highly competitive market, where voice revenues are maturing rapidly and internet competition is fierce.”

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