KUALA LUMPUR: Maxis Bhd's net profit dropped 76 per cent to RM56 million in the fourth quarter ended Dec 31, 2023 (4Q23) from RM233 million a year ago.
The decline in net profit was due to a RM231 million charge for accelerated depreciation and assets written off, for certain telecommunication equipment and software, and tax settlement of RM73 million in the fourth quarter 2023, Maxis said in a filing to Bursa Malaysia.
However, the group's revenue for the quarter rose 7.5 per cent to RM2.74 billion from RM2.55 billion previously, contributed by growth across consumer business and enterprise business.
The company registered a lower earnings per share of 0.70 sen for the quarter than the 3.0 sen in 4Q22.
Maxis declared an interim dividend of four sen per share, bringing the full year dividend to 16 sen per share.
For the full financial year (FY23), the company's net profit stood at RM993 million against RM1.15 billion in the previous year, while revenue was up RM10.18 billion against RM9.79 billion in FY22.
According to Maxis, it saw robust growth across its consumer and enterprise businesses, underpinned by its strategy to focus on its core competencies as the leading integrated telecommunications provider.
Maxis' consumer business grew 3.7 per cent, surpassing the RM7 billion service revenue mark for the year.
Postpaid revenue increased 7.5 per cent year-on-year (YoY) in tandem with subscriber growth.
Since introducing its 5G plans in August 2023, the company has expanded 5G offerings across all its mobile plans to deliver greater value.
Home broadband subscribers grew to 750,000 households, supported by strong fibre broadband uptake
Maxis' enterprise business' overall revenue grew 6.4 per cent from growth in all product categories, including mobile, fixed connectivity and enterprise solutions, contributed by contract wins.
As an integrated telco, Maxis said it continues to meet the connectivity and digital needs of enterprises of all sizes.
It noted that it managed capex prudently while maintaining operational and service excellence, with RM813 million in cape invested during the year.
Commenting on the financial performance, Maxis chief executive officer Goh Seow Eng said it delivered solid results in keeping with our promise of sustainable growth.
"We will continue to build upon our solid foundation as the leading integrated telecommunications provider, ensuring we stay laser-focused on providing the best customer experience," he added.