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Edited Transcript of MAXIS.KL earnings conference call or presentation 2-Aug-19 10:59am GMT

Q2 2019 Maxis Bhd Earnings Call

Kuala Lumpur Aug 6, 2019 (Thomson StreetEvents) -- Edited Transcript of Maxis Bhd earnings conference call or presentation Friday, August 2, 2019 at 10:59:00am GMT

TEXT version of Transcript

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Corporate Participants

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* Gokhan Ogut

Maxis Berhad - COO & Acting CMO

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Presentation

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Gokhan Ogut, Maxis Berhad - COO & Acting CMO [1]

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Hello, I am Gokhan, and I am pleased to share with you our Q2 2019 performance and outlook as we move forward into the next 6 months of the year.

We are in interesting times of the telco industry. The landscape continues to evolve from changes in consumer behavior to demands for even greater connectivity and affordable prices. As competition intensifies, we are excited about the opportunities that lie ahead, especially in converged solutions. We continue to have a solid core mobile business, and our fiber propositions are still proving to be very popular amongst our Home and Enterprise customers.

We are pleased to see our Enterprise business growth on track with some really good partnerships forged and key initiatives launched. Our efforts to deliver the best value and to provide differentiated and unmatched personalized experience have also seen higher customer satisfaction scores. Overall, we are on a strong momentum in executing our new growth strategy and are progressing well towards our ambition to become Malaysia's leading converged solutions company.

It was an exciting quarter, especially on the Enterprise front, where we began to reinforce and accelerate our IoT agenda. We launched Malaysia's first commercial NB-IoT service, activating our NB-IoT network in key market centers across the country. Our partnership with Malaysian Digital Economy Corporation (sic) [Malaysia Digital Economy Corporation] to jointly promote the development of the local IoT system was an important one. Meanwhile, MaxisONE Prime converged product continues to grow from strength to strength. In Q2, we elevated our customer's fiber broadband experience with 3 new superfast speeds. In our efforts to bring personalized experiences to a new level for our digital-savvy customers, we unveiled our brand-new concept store at The Gardens, Mid Valley. With a new design language, cutting-edge technology and end-to-end digital services, it was our testament to our converged solutions ambition.

More and more of our customers are also connecting with us through their mobile phones for our services, which is evident in the continued increase in our apps. 4G data usage is -- at yet another all-time high. Our network investments remain a high priority to support this unprecedented data traffic. Being at the forefront of new technologies, our network quality and performance continue to be a key differentiator. We were the first to bring 4G to Malaysia, and now we are forging ahead with our 5G readiness. During this quarter, we showcased 5G use cases to the public at the 5G Malaysia Putrajaya Showcase. This was indeed a proud moment for all of us. Our 5G journey continues, and we will have more to tell in the next quarter.

All our initiatives have translated into a steady performance for quarter 2. Here is the quick summary of quarter-on-quarter. Our service revenue and EBITDA remains stable, driven by a resilient performance in our core business. While we saw a slightly lower profit after-tax, we have very healthy cash flow as a result of lower payments in the current quarter as well as the productivity and working capital programs producing solid results. The Board was pleased to declare the second interim dividend of MYR 0.05 per share.

For the rest of the 2019, we expect the markets to be challenging, yet, we remain optimistic in leveraging our leadership in core mobile, converged offerings and carrier network quality. We are making very good progress in executing our 5-year growth plan with a lot of opportunities in both the Consumer and Enterprise segments for our converged solutions.

We will continue to keep a sharp focus on our growth strategy and offerings that will take it to our customer's evolving digital lifestyle. Thank you.