business

Maxis' net profit decreases 5.4pc to RM1.31 billion for FY21 due to heavy investments to strengthen network, fibre coverage

KUALA LUMPUR: Maxis Bhd's net profit decreased 5.4 per cent to RM1.31 billion in the financial year ended December 31, 2021 (FY21) from RM1.38 billion recorded in FY20.

In a statement today, the telecommunication company attributed the dip in net profit to the continued heavy investments to strengthen the Maxis network, enterprise solutions and fibre coverage, and prudent adoption of reduced spectrum life.

These have resulted in high depreciation and amortisation costs.

During 2021, Maxis has invested RM1.2 billion in capital expenditure (capex), with RM597 million in the fourth quarter (Q4) alone, the highest in a single quarter.

The investment was primarily to ensure high performance of its All-Ways Connected Network, future-proofing for enterprise solutions, and its commitments for Jalinan Digital Negara (Jendela), which included the delivery of 50k Fibre-to-Home in 2021.

Revenue in FY21 increased 2.6 per cent to RM9.20 billion from RM8.97 billion, driven by the core mobile business, which delivered steady growth in postpaid while registering accelerated growth in fibre and wireless broadband.

"Our convergence strategy and great agility in this fast-changing environment enabled us to be resilient, while our people have shown great commitment in supporting the needs of our customers and the community," Maxis chief executive officer Gökhan Ogut said.

"Through our continued investments in Rangkaian Kita and support for Rangkaian Malaysia, we are committed to bringing together best-in-class technologies and our All-Ways Connected network to ensure all individuals, families and businesses in Malaysia are connected more than ever before," he said.

In Q4, Maxis' net profit eased 9.4 per cent to RM289 million from RM319 million recorded in the same quarter a year ago, while revenue increased 8.3 per cent to RM2.45 billion from RM2.26 billion.

Maxis has declared a fourth interim dividend of four sen per share, plus a special interim one sen per share, bringing the increased annual dividend to 17 sen per share.

Most Popular
Related Article
Says Stories