Maxis exceeds expectations

Malaysian operator Maxis Communications has beaten expectations by reporting a fourth quarter profit. Maxis posted a net profit of MYR435 million (USD117 million) for the three months ended 31 December 2005, compared with MYR377 million a year earlier. Full-year net profit was up 18% to MYR1.71 billion, on the back of a 12% increase in revenues to MYR6.37 billion, from MYR5.69 billion in 2004. EBITDA rose 10% to MYR3.54 billion in 2005, as a result of higher turnover coupled with improvements in cost efficiencies and economies of scale. Maxis ended 2005 with 7.86 million mobile subscribers, up from six million a year earlier. In a statement the company said it planned to pay a total of MYR1.05 billion in dividends for the full year, its highest ever. It vowed to maintain market share over the next three years, during which time it believes the Malaysian mobile market will reach saturation.