Maxis Q4 profit grows 7.2%
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Malaysia’s Maxis has reported a 7.2% increase in net profit for the fourth quarter to 477 million ringgit ($115.8 million), on the back of solid revenue gains.
Service revenue grew 3.2% year-on-year to 2.16 billion ringgit despite intense price-focused competition.
For the full year, profit after tax grew 0.9% to 1.96 billion ringgit, with service revenue up 3.8% to 8.23 billion ringgit.
Postpaid revenue was up 2.7% to 3.66 billion ringgit as a result of solid adoption of its MaxisONE plans, which helped compensate for declines in voice and SMS.
Prepaid revenue meanwhile increased 6.2% year-on-year to 4.18 billion riggit on the back of rising data usage and market share gains in the migrant customer segment.
During the year the company more than doubled its LTE coverage to span 71% of the population. The company accelerated its infrastructure spending to a total of 1.3 billion ringgit during 2015.
Maxis CEO Morten Lundal commented that the company plans to push on with its transformation efforts in the year ahead.
“The first phase of our transformation of becoming a high performing mobile company is more or less done. Now we have a strong foundation to push ahead with the second phase of our transformation of becoming the preferred choice for digital experience seekers,” he said.
Questions & Answers
Q.What contributed to the increase in Maxis's postpaid revenue?
What contributed to the increase in Maxis's postpaid revenue?
Postpaid revenue increased due to solid adoption of the company's MaxisONE plans. These plans helped to offset declines experienced in voice and SMS services, contributing to the overall growth in this segment.
Q.What factors drove the growth in Maxis's prepaid revenue?
What factors drove the growth in Maxis's prepaid revenue?
Prepaid revenue grew on the back of increasing data usage among customers. Also, the company secured market share gains within the migrant customer segment, which further bolstered the revenue in this area.
Q.What is the next phase of Maxis's transformation efforts, according to its CEO?
What is the next phase of Maxis's transformation efforts, according to its CEO?
The company's CEO stated that the first phase of becoming a high-performing mobile company is largely complete. The next phase involves transforming Maxis into the preferred choice for digital experience seekers.
Q.How much did Maxis spend on infrastructure during 2015?
How much did Maxis spend on infrastructure during 2015?
Maxis accelerated its spending on infrastructure during 2015, investing a total of 1.3 billion ringgit. This investment also led to a significant increase in LTE coverage, which more than doubled that year.
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