Maxis Bhd’s earnings rose 13.8% to RM528mil in the second quarter ended June 30, 2013 from the RM464mil a year ago based in higher data and wholesale revenues which offset a slight decline in mobile services revenue.
The company had on Tuesday rewarded shareholders with a tax-exempt dividend of eight sen a share which will go ex on Sept 4.
Maxis said its revenue rose at a smaller pace of 3.5% to RM2.294bil from RM2.216bil a year ago. Earnings were seven sen compared with 6.2 sen.
Maxis said for Q2 ended June 30, 2013 the mobile services revenue decreased RM33mil or 2% quarter-on-quarter largely due to lower voice and SMS revenue and outright device sales, which was compensated by increasing data and wholesale revenues. This resulted in average revenue per user (ARPUs) which were relatively stable across the board.
“Earnings before interest, tax, depreciation and amortisation (EBITDA) for mobile services grew by RM39mil or 4%, driving EBITDA margin to 52.7%, an improvement of 2.6% points from last quarter.
“The higher EBITDA was achieved through prudent cost management, relating to sales and marketing expenses, other operating costs and lower device related expenses,” it said.
Maxis said enterprise fixed services revenue reported lower revenue and EBITDA of RM5mil and RM4mil respectively driven by lower volume of business.
“International gateway services revenue increased marginally by RM3mil or 5% quarter-on-quarter due primarily to higher hubbing volume. EBITDA was RM1mil higher this quarter,” it said.
For the first half (H1 ended June 30, 2013), its earnings were RM1.003bil compared with RM1.036bil in the previous corresponding period. Its revenue rose 3.9% to RM4.621bil from RM4.445bil.
Maxis said year-on-year, mobile services revenue increased 2% or RM101mil. This growth was largely driven by non-voice revenue, recording an increase of 7.5% or RM145 million which was principally from higher mobile internet usage and higher device sales.
For the period under review, non-voice contribution was at 47.7% of mobile revenue, up 2.4% points over the same period last year.
“Blended ARPU for the quarter declined by RM3. Although there were incremental increases in data usage by both Prepaid and Postpaid customers, these increases were not able to fully compensate for lower voice and SMS usage. The RM4 decline in Wireless Broadband ARPU was a result of the uptake of lower priced subscription plans by our customers.
“EBITDA for mobile services increased RM17mil or 1%, on the back of higher revenues, However, EBITDA margin declined 0.8% point to end the period at 51.4%. This was caused by higher direct costs, mostly which were traffic and device related,” it said.