Maxis’ 2Q profits fall amidst fierce competition

25 Aug 2005

Malaysian wireless market leader Maxis Mobile has reported second quarter net income of MYR398 million – down 14% on the corresponding period of last year despite an 11% rise in revenues to MYR1.52 billion and a 1% increase in subscribers to 6.64 million. Net profit for the first half of 2005 was MYR837.0 million, up 6.2% year-on-year. The company attributed the 2Q profit drop to the highly competitive local market and intense price pressure, which saw its monthly average revenue per user (ARPU) for post-paid subscribers slide by 11% to MYR138 and pre-paid ARPU fall 5% to MYR54.

Maxis said that it expects ‘satisfactory’ financial performance for the remainder of 2005 but did not provide an earnings forecast.

Malaysia, Maxis, Maxis Mobile