Maxis lost 178k subscribers and declines in profit for 1Q17

Maxis lost 178k subscribers and declines in profit for 1Q17

Maxis had released their financial report of first quarter 2017 last Thursday. Based on the report, Maxis had slightly declines in profit and lost total number of 178k subscribers.

There are now 7.75 million prepaid and 2.74 million postpaid revenue generating subscribers. Out of these numbers, 1.74 million are using Hotlink Fast prepaid and 1.78 million are on the MaxisONE postpaid plan.

Maxis said that, among all their subscribers, 77% of prepaid and 83% of its postpaid base are smartphone users. Maxis postpaid subscribers uses an average 6.2GB a month while its 3.7GB/month for prepaid. There are 5.2 million 4G LTE devices in the network. Moreover, Home Connection Fibre subscriber base are now higher at 153k compared to 146k subscribers in 4Q16.

As for the Maxis network, 4G LTE population coverage now stands at 82%, measured at -98dBm.

Year-over-Year (yoy) – Q1 2017 vs Q1 2016, according to Maxis:
-Stable service revenue at RM2,129 million against RM2,122 million a year ago, supported by strong average revenue per user (ARPU)
-Sustained postpaid and prepaid momentum in a very price-focused market
-Postpaid revenue at RM989 million against RM997 million a year ago, with a solid base of nearly 1.8 million MaxisONE customers
with high monthly ARPU of RM121. Added 826k new MaxisONE subscriptions
-Prepaid revenue at RM1,005 million against RM1,008 million in Q1 last year with continued good traction on mobile Internet ARPU
-Investments for future efficiencies and one-time adjustments impacted earnings before interest, tax, depreciation and amortisation (EBITDA). Normalised EBITDA was RM1,118 million as compared to RM1,156 million last year. Strong EBITDA margin (on service revenue) at 52.5%
-Normalised profit after tax (PAT) grew 5.4% to RM510 million from RM484 million
-Declared a first interim dividend of five sen per share