Maxis Q3 net profit rose, but what about revenue?

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Maxis Q3 Net Profit Saw a Slight Increase Amidst Revenue Decline

Maxis Berhad reported a marginal increase in its net profit for the third quarter ending September 30, 2020, reaching RM365 million compared to RM358 million in the same period of 2019. However, the company experienced a decline in its revenue, which fell by 3.2 per cent to RM2.21 billion from RM2.28 billion in the prior year.
Service Revenue Stability Offset by Business Mix Changes

Despite the overall revenue dip, Maxis's service revenue remained unchanged at RM1.94 billion when compared to Q3 2019. This stability was achieved by offsetting the loss of wholesale business and international roaming income, attributed to the COVID-19 pandemic, with growth in its enterprise and fibre segments. Excluding wholesale revenue, service revenue actually saw a slight increase of RM10 million, reaching RM1.93 billion.
Postpaid and Prepaid Segments Face Revenue Challenges

The postpaid segment reported a decrease in service revenue, falling to RM956 million from RM979 million previously. This was accompanied by a reduction in average revenue per user (ARPU) to RM84 from RM90, largely influenced by a mobile termination rate reduction, the dilutive effect of Hotlink Postpaid, and the absence of international roaming income. Prepaid service revenue also declined, dropping to RM717 million from RM794 million, a consequence of a reduced subscriber base to 5.91 million from 6.33 million due to ongoing SIM consolidation, successful migration to the Hotlink entry point postpaid service, and a lower foreign worker demographic. Prepaid ARPU, however, remained relatively stable at RM40.
Capital Expenditure Increased for Network and Future Readiness

Maxis's capital expenditure for the third quarter stood at RM319 million, a notable increase from RM242 million in Q3 2019. These investments were strategically directed towards safeguarding network performance, rebalancing capacity, preparing for 5G technology, and bolstering the enterprise business. The company has indicated it is monitoring the impact of COVID-19 and will disclose any material information as required, while maintaining a strong financial position to navigate the current uncertainties.

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Maxis Q3 net profit rose, but what about revenue?

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