Maxis Q2 2025 Results: Profit Soars Amidst Stable Revenue, Dividend Declared
Maxis Berhad, a leading integrated telecommunications provider in Malaysia, has just released its financial results for the second quarter ended June 30, 2025. The report reveals a compelling story of robust profitability and strategic resilience in a competitive market. While revenue saw a slight dip, the company delivered impressive double-digit growth in its net profit and has rewarded shareholders with a second interim dividend of 4 sen per share.
Let’s dive deep into the numbers to unpack Maxis’s performance, explore the key drivers behind its growth, and look at what the future holds for this telco giant.
Core Data Highlights: Profitability Shines Through
The key takeaway from this quarter is Maxis’s ability to drive significant profit growth through disciplined cost management, even as overall revenue remained relatively flat. This demonstrates strong operational efficiency.
Here’s a year-on-year comparison of the core financial metrics for the second quarter:
Q2 2025 (Current Quarter)
Revenue: RM 2,562 million
Profit Before Tax: RM 537 million
Net Profit: RM 398 million
Earnings Per Share: 5.1 sen
Q2 2024 (Same Quarter Last Year)
Revenue: RM 2,586 million
Profit Before Tax: RM 483 million
Net Profit: RM 356 million
Earnings Per Share: 4.6 sen
While total revenue saw a marginal decline of 0.9% year-on-year, the bottom line tells a different story. Profit Before Tax surged by an impressive 11.2%, and Net Profit followed suit with a strong 11.8% increase. The slight dip in service revenue was attributed to a new commercial arrangement for the Maxis SafeDevice program and reduced regulated interconnect rates. However, the company’s effective cost management more than compensated for this, leading to healthier margins and a stronger profit figure.
A Closer Look at Business Segments
Maxis operates through two primary business segments: Consumer and Enterprise. Their performance provides insight into the company’s strategic focus areas.
| Segment/Metric | Q2 2025 Revenue (RM million) | Year-on-Year Growth | Key Insights |
|---|---|---|---|
| Consumer Business | 1,797 | -1.0% | Slight decline due to factors mentioned above. |
| – Postpaid | 933 | +1.9% | Solid growth driven by an 8.5% increase in subscriptions to 4.04 million. |
| – Prepaid | 610 | -5.9% | Facing challenges in a competitive segment. |
| – Home Connectivity | 254 | +1.2% | Steady growth with an expanding subscriber base. |
| Enterprise Business | 407 | +1.5% | Positive growth driven by increased mobile subscriptions and wholesale services. |
The Consumer business remains the bedrock of Maxis’s revenue, with the Postpaid segment showing particular strength in subscriber growth. Meanwhile, the steady expansion of the Enterprise business highlights the company’s success in diversifying its revenue streams and capturing value in the corporate market.
Financial Health Check: A Stronger Balance Sheet
A company’s profitability is only part of the picture. Its financial health, particularly its debt levels, is crucial for long-term stability. On this front, Maxis has shown positive progress.
The company’s net debt position has improved, decreasing to RM 8,337 million from RM 8,825 million at the end of 2024. Consequently, the Net Debt-to-EBITDA ratio, a key metric for assessing a company’s ability to pay off its debts, has improved from 2.14x to a healthier 1.99x. This indicates strong financial discipline and a reduced risk profile.
Navigating a Competitive Market: Risks & Future Outlook
The Malaysian telecommunications landscape is fiercely competitive. Maxis acknowledges this “elevated competition” as a key challenge. However, the company has laid out a clear strategic roadmap to maintain its leadership position.
For 2025, Maxis is focused on five priority areas:
- Strengthen the Consumer Fortress: Focus on bundling and cross-selling services to enhance customer loyalty.
- Grow Enterprise Business: Continue expanding services for corporate clients.
- Build Infrastructure and Wholesale: Invest in its network to support future growth and wholesale opportunities.
- Digitalise and Adopt AI: Leverage technology to improve operational efficiency and customer experience.
- Operating with Excellence: Maintain disciplined cost management and operational execution.
Looking ahead, the company guides for a low single-digit increase in service revenue and flat to low single-digit growth in EBITDA for the full year 2025, with a planned capital expenditure of around RM1 billion to future-proof its network.
Summary and Investment Recommendations
Note: This analysis is for informational purposes only and should not be considered as financial or investment advice. Investors should conduct their own research before making any investment decisions.
Maxis’s second-quarter results highlight a company that is successfully navigating market headwinds through operational excellence. The strong growth in profitability, consistent dividend payments, and improving debt metrics are significant positive takeaways for investors. The continued growth in postpaid subscribers and the enterprise segment demonstrates a solid strategic execution.
However, investors should remain mindful of the potential risks:
- Intense Market Competition: The telecommunications sector remains highly competitive, which could put pressure on margins and subscriber growth.
- Regulatory Headwinds: Changes in regulations, such as the reduced interconnect rates, can directly impact service revenue and profitability.
- ARPU Pressure: A slight decline in Average Revenue Per User (ARPU) in both postpaid and prepaid segments requires a strategic focus to stabilize and reverse.
Despite these challenges, Maxis’s clear strategic priorities and proven ability to manage costs effectively position it well to continue delivering value to its shareholders.
From my perspective, Maxis’s Q2 2025 report paints a picture of a mature company adeptly managing its costs to drive profitability. While top-line growth is modest, the strategic focus on the enterprise segment and strengthening its consumer base through bundled offerings appears to be a sound approach for long-term stability.
What are your thoughts on Maxis’s strategy to combat the competitive pressures? Do you think their focus on enterprise and AI will be key to future growth?
Share your views in the comments below!
For more analysis on the Malaysian telco sector, check out our article on [Link to another article].
