Maxis net falls 7% on higher costs, bad debt

Nicole McCormick
26 Feb 2010

Earnings at Malaysia’s leading cellco Maxis fell 7% in 2009 due to higher interconnect charges and allowance for doubtful debts.

Maxis posted full-year ebitda of RM4.33 billion ($1.27b), down 1%, on 2% higher revenues of RM8.61 billion.

The results for the recently relisted firm were in line with analyst expectations.

But its growth was overshadowed by second-ranked Malaysian mobile operator Celcom, which delivered 11% ebitda growth year on year.

On a quarterly basis, Maxis reported a 2.6% revenue increase thanks to prepaid and mobile broadband subs growth.

For FY10, management is targeting “high single digit” revenue growth and hopes to maintain ebitda margin via cost management.

A 6 sen single-tier tax exempt interim dividend was declared while another 3 sen final dividend was proposed.

Dividends from Maxis will be needed to fund the parent firm’s privately-owned Indian operation Aircel.

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