Maxis (MAXIS) Q2 2024 earnings summary

Executive summary

• Service revenue reached RM2,216 million, up 1.1% quarter-on-quarter and 4.9% year-over-year, reflecting steady growth across consumer and enterprise segments.

• Revenue for Q2 2024 increased by 4.7% year-over-year to RM2,586 million, with strong growth in both consumer and enterprise segments.

• EBITDA rose to RM1,046 million, a 0.2% increase sequentially and 4.4% year-over-year, driven by top-line growth and cost discipline.

• Profit after tax for Q2 2024 rose 8.2% year-over-year to RM356 million, with net profit margin improving to 13.7% from 13.0% a year ago.

• Year-to-date June 2024, revenue grew 3.9% and profit after tax increased 9.2% compared to YTD June 2023.

Financial highlights

• Q2 2024 EBITDA was RM1,046 million, up 4.4% year-over-year, with a margin of 47.2% on service revenue.

• Operating free cash flow for Q2 2024 was RM1,016 million, up 6.9% quarter-on-quarter and 18.4% year-over-year.

• Capex for Q2 2024 was RM116 million, focused on network modernization, IT digitization, and future-proofing infrastructure.

• Basic earnings per share for Q2 2024 was 4.6 sen, up from 4.2 sen in Q2 2023.

• Dividend of 4 sen per share declared; total interim dividends for the period reached 8 sen.

Outlook and guidance

• FY24 guidance maintained: low single-digit growth in service revenue and marginal to low single-digit EBITDA growth.

• Capex expected to remain below RM1 billion, excluding potential 5G impacts.

• The company is participating in the spectrum tender for Malaysia's second 5G network and is aligned with the government's dual 5G network model.