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13
Maxis Berhad
Annual Report 2014
GROWTH AND EVOLUTION
The industry continued to be challenging
in 2014, with increasing and tougher
competition amongst existing players
in the market. With the ever expanding
digitalised world and maturing industry,
Over-The-Top (“OTT”) players are
increasingly strengthening their positions
in the market with their Internet-based
messaging services, impacting industry
SMS and voice revenues, and limiting
industry growth during the year. New
entrants are also emerging, some
with more competitive pricing, which
potentially pose a longer term threat.
On a more positive note and in tandem
with global trends, there is a continuing
upshift in data usage. More and
more users are turning towards their
smartphones and mobile Internet to fulfil
their daily communications needs.
So, 2014 was critical for Maxis because
we started transforming our fundamentals
to meet these accelerating demands
and deliver greater experiences to
our customers.
GROUP PERFORMANCE
Overall, we had a solid end to the year.
We are growing our revenue generating
subscriber (“RGS”) base again,
particularly in prepaid where in the fourth
quarter of 2014 alone, we added 536,000
new RGS prepaid customers.
Group service revenue was at RM8.2
billion for the year, 3.3% lower than 2013,
mainly due to the impact of our decision
Chairman’s
Statement
to introduce worry-free propositions in
the way we charge for data and roaming.
The impact of voice and SMS was also a
factor in our financial performance.
In 2014, Maxis delivered an EBITDA of
RM4.2 billion with corresponding EBITDA
margin of 50.4%, marginally lower than
RM4.3 billion recorded in 2013. The lower
EBITDA takes into account lower service
revenue and higher marketing spend to
support the business. As a result, Profit
After Tax for the year was 2.7% lower
compared to 2013, at RM1.7 billion.
The Board of Directors is pleased to
recommend for shareholders’ approval at
the forthcoming Annual General Meeting,
a final single-tier tax-exempt dividend of
eight sen per share for the financial year
ended 31 December 2014.
The four interim dividends paid and
recommended final dividend will bring
the total dividend for 2014 to 40.0 sen
per share.
If approved, the Company would have
declared and delivered a total of RM2.15
per share in cumulative dividends since
the IPO in 2009, amounting to a total
payout of RM16.1 billion to shareholders.
GOOD PROGRESS ON
TRANSFORMATION
I am extremely pleased to report that
we have made steady progress in our
transformation journey that we undertook
during the year. We invested significantly
in modernising our network, and our
invested in
network
and
4G LTE
expansion in 2014 to provide significantly
improved voice and data quality.
billion
CAPEX
RM1.1
various customer experience initiatives
are on track, where we have seen an
enhancement to our service delivery and
customer satisfaction levels. In the same
year, we launched the MaxisONE plan and
MaxisONE Business and we are seeing
good customer traction with these two
key products. Our retail modernisation
and expansion plans to provide the best
sales and service experience to our
customers are also progressing well.
Our network remains a critical component
of our transformation journey, and we
invested RM1.1 billion in this area for
2014. During the year, we continued with
our network modernisation initiatives
as well as 4G LTE expansion. As a
result, more than three quarters of our
network is now modernised and our
4G LTE coverage is expanding rapidly,
covering all major market centres,
state capitals and secondary towns.
