Maxis chief executive officer Morten Lundal says 2017 was a strong year as the company gained further market share both in revenue and profits.

KUALA LUMPUR: Maxis Bhd’s net profit increased 8.96 per cent to RM2.19 billion in the year ended Dec 31 2017 (FY17) from RM2.01 billion previously.

Group revenue rose 0.7 per cent to RM8.67 billion from RM8.61 billion in FY16.

Maxis said its earnings before interest, taxes, depreciation and amortisation (EBITDA) grew 2.1 per cent year-on-year (yoy) to RM4.6 billion from RM4.5 billion, reflecting higher revenue and positive results from cost optimisation initiatives.

Maxis’ net profit in the fourth quarter (Q4) rose 10.69 per cent to RM559.00 million from RM505.00 million in the same period a year ago.

In an exchange filing today, the communications and internet service provider said its revenue in Q4 declined 2.71 per cent to RM2.15 billion from RM2.21 billion a year ago.

Its service revenue continued to grow positively in a declining market, up 0.8 per cent to RM8,525 million from RM8,455 million a year ago, supported by strong growth in postpaid and integrated services.

Its postpaid delivered yoy growth of 4.2 per cent with revenue of RM4,117 million from RM3,951 million last year, driven by growth in subscription base, with high and stable average revenue per user (ARPU).

Meanwhile, prepaid revenue declined by 3.7 per cent to RM3,849 million from RM3,997 million a year ago due to lower subscription base.

“We continued to focus on retaining and growing our quality subscribers, in particular high mobile Internet users.”

The company declared a fourth interim dividend of five sen net per share, payable on March 29. This brings the full-year dividend to 20 sen net per share.

Chief executive officer Morten Lundal said 2017 was a strong year as the company gained further market share both in revenue and profits.

He added that overall Maxis customers enjoy a combination of lots of quality data, attractive products and great connectivity.

“We are most of all proud to record the highest customer satisfaction we have ever seen. We are on track towards our ambition for full digitalisation. All in all, a strong finish to a great year,” he said.

Maxis expects the market to remain competitive as data quality and pricing continues to be the focus for customers and competition this year.

Its base capital expenditure is expected to be around RM1.0 billion and free cash flow (excluding upfront spectrum assignment fees) due to the high investments in preceding years.

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