KUALA LUMPUR, Feb 24 — Maxis Bhd’s net profit eased to RM1.31 billion in the financial year ended Dec 31, 2021 (FY2021) from RM1.38 billion a year earlier, mainly due to higher depreciation and amortisation resulting from capital expenditure (capex) investments.  

Revenue increased to RM9.20 billion from RM8.97 billion previously, it said in a filing to Bursa Malaysia.

In the fourth quarter to Dec 31, 2021 (Q4 FY2021), the company recorded a lower net profit of RM289.0 million from RM319.0 million year-on-year, mainly attributed to the continued heavy investments to strengthen its network, enterprise solutions and fibre coverage, as well as prudent adoption of reduced spectrum life, which resulted in high depreciation and amortisation costs. 

Revenue for the quarter rose slightly to RM2.45 billion from RM2.26 billion in the same period in the preceding year.

In a separate statement, Maxis chief executive officer Gökhan Ogut said the group’s convergence strategy and great agility in the fast-changing environment had enabled Maxis to be resilient, while its people have shown great commitment in supporting the needs of the customers and community.

“Through our continued investments in 'Rangkaian Kita' and support for 'Rangkaian Malaysia', we are committed to bringing together best-in-class technologies and our All-Ways Connected network to ensure all individuals, families and businesses in Malaysia are connected more than ever before,” he added.

Maxis recorded robust operating free cash flow at RM1.28 billion in Q4 FY2021, up 12.2 per cent year-on-year due to prudent cash flow management and improved efficiency from the working capital programme as well as lower universal service provision and tax payments.

With a priority in providing the best customer experience, Maxis invested RM1.2 billion in capex for FY2021, with RM597 million in Q4 alone, the highest in a single quarter.

Maxis said the investment was primarily to ensure high performance of its All-Ways Connected Network, future proofing for Enterprise solutions as well as its commitments for the National Digital Network (Jendela) which included the delivery of 50,000 Fibre-to-Home service in FY2021.

Maxis has exceeded all Jendela commercial targets for last year, in accelerating capacity for both mobile and fixed, with 54 new sites built, 2,471 upgraded and 21,000 premises passed.

Moving forward, Maxis said it is closely monitoring and assessing the impact of 5G commercial launch and Covid-19 and when it becomes appropriate to disclose any material information.

The company added that its financial results in the current financial year would be impacted by the one-off prosperity tax introduced in Budget 2022 wherein the group’s pre-tax profits above RM100 million will be taxed at a higher rate of 33 per cent, which is 9.0 per cent above the standard 24 per cent tax rate. — Bernama