Maxis Q3 earnings up 6.7% to RM474m, dividend 8 sen

KUALA LUMPUR: Maxis Bhd’s earnings rose 6.7% to RM474mil for the third quarter of the financial period ending Sept 30, 2013, from RM442mil a year before as it was impacted by a one-time career transition scheme (CTS).

 It said on Tuesday, this was achieved on a revenue of RM2.239bil, a 1% improvement from RM2.216bil previously. Profit before tax rose 5.53% to RM667mil from RM632mil previously.

Earnings per share improved to 6.3 sen from 5.9 sen before, and Maxis declared a dividend of 8 sen per share, similar to 3Q2012’s payout.

Year-to-date, the company’s revenue increased 2.98% to RM6.86bil from RM6.661bil in the previous corresponding period, but earnings dipped 1.42% to RM1.475bil from RM1.478bil previously.

According to Maxis, group profit after tax for the period, which stood at RM1.48bil, would have increased 4% to RM1.631bil were it not for the company’s one-time Career Transition Scheme (CTS) costs, accelerated depreciation related to network modernisation programme, and higher financing and amortisation costs.

Mobile services revenue grew 1% or RM67mil to RM6.421bil, but margin was lower, mainly due to higher traffic and device related expenses, and one-time CTS costs.

On prospects for the year, Maxis said mobile operators were operating in a competitive environment where customer behaviour and needs were increasingly data- and Internet-centric.

"The group has continued to expand and enhanced its 3G HSPA+ infrastructure and continues to lead in terms of 4G LTE coverage footprint. 4G LTE services – which are now available in Klang Valley, Penang, Johor Bahru, Sabah and Sarawak – will be expanded progressively,” Maxis said.

“Our offerings will also be increasingly focused on capturing the growing demand for high-speed Internet access. At the same time, the group will continue to proactively manage its costs. Based on the financial results to date, the group expects to achieve a similar revenue growth for the financial year 2013 to that of the preceding year.”