KUALA LUMPUR (April 28): Maxis Bhd, the country's largest telecommunications company, posted a lower net profit of RM298 million for the first quarter ended March 31, 2022 (1QFY22) from RM334 million a year ago, mainly from the spectrum rights amortisation.

Earnings per share (EPS) for the quarter came in at 3.8 sen for 1QFY22, from 4.3 sen for 1QFY21.

Quarterly revenue improved by 7.4% to RM2.41 billion from RM2.24 billion in that period. Service revenue for 1QFY22 rose 3% to RM2.03 billion from RM1.97 billion a year ago, on the back of better contributions from postpaid, home connectivity and enterprise business.

On a quarter-on-quarter basis, Maxis’ net profit was 3.1% higher from RM289 million in 4QFY21, due to lower depreciation costs with the 3G network fully shutdown. However, revenue declined by 2% q-o-q from RM2.46 billion in 4QFY21.

Maxis declared a first interim dividend of 5 sen per share, payable on June 30.

Its capital expenditure (capex) for the quarter was higher by 25.7% at RM171 million against RM136 million a year ago, as the company continued to invest heavily in strengthening its ubiquitous access and platforms to deliver on enterprise solutions, as well as rebalancing capacity.

Operating free cash flow for the quarter was up 11.3% year on year to RM669 million, driven by a strong focus on working capital initiatives and cash flow management.

In a statement, Maxis chief executive officer Gokhan Ogut said the group's top priority is to continue to deliver a great converged network with an unmatched personalised experience across all channels for its customers.

On prospects, Maxis said it does not consider the disclosure of a financial outlook for FY22 as prudent, as uncertainties such as the government’s decision to continue with the 5G Single Wholesale Network (SWN) under Digital Nasional Bhd (DNB), the unveiling of the MyDIGITAL initiative and Malaysia Digital Economy Blueprint, as well as the potential emergence of a more infectious Covid-19 variant could temper the Malaysian and global economic recovery.

“The group is closely monitoring and assessing the impact of equity participation in DNB, 5G commercial launch and Covid-19 and when it becomes appropriate to disclose any material information, this will be made in accordance with the Main Market Listing Requirements,” it said in a filing with Bursa Malaysia.

Maxis shares closed down two sen or 0.5% at RM3.81 on Thursday (April 28), valuing the group at RM29.8 billion.