Maxis on track to hit RM10b service revenue by 2023

, April 26 — Maxis Bhd is on track to achieve an annual service revenue of RM10 billion by 2023 from the current RM8 billion.

Interim chief executive officer Gokhan Ogut said Maxis had started its five-year transformation journey that focuses on three areas, which include catering to evolving digital lifestyles and personalised experiences for its customers.

“As part of our ambition, we would like to double our enterprise business in three years in terms of total revenue and triple it in five years.

“This is quite a big ambition, going from a RM8 billion company to become a RM10 billion company. Enterprise will be contributing the most in this journey,” he told reporters after presenting Maxis’ growth strategy and first quarter 2019 financial results here today.

He, however, declined to reveal the current contribution of the enterprise segment to the group’s revenue.

Also present was chief financial officer and chief strategy officer Wayne Treeby.

Maxis recorded a 20 8 per cent decline in its normalised net profit in the first quarter of 2019 to RM404 million from RM510 million a year ago, in line with the decline in earnings before interest, taxes, depreciation and amortisation (EBITDA).

Normalised EBITDA was RM953 million with a solid margin on service revenue of 48.9 per cent for the first quarter of the year, driven by a continued focus on profitable segments and cost optimisation initiatives.

The decline from the first quarter of 2018 was attributed to the decline in wholesale revenue due to expected termination of the network sharing agreement, continued investment in FibreNation and mobilisation of enterprise opportunities, among others.

Maxis allocated capital expenditure of RM1 billion over three years.

The telecommunications company also recorded stronger free at RM264 million, increasing 60 per cent year-on-year.

“We are starting to deliver in our ambitions, systematically building momentum in executing our new growth strategy. Customer take-up of our converge, fibre and enterprise services has been strong, with results that have exceeded our expectations,” said Ogut. — Bernama

Source: The Malay Mail Online

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