Maxis board chairman to step down June 30

Malaysian telco operator Maxis announced that its chairman of the board Tan Sri Mokhzani bin Mahathir is stepping down from his post effective June 30.

No reason was given for Mokhzani's sudden departure in a brief media statement issued today.

"I am truly proud of what we have achieved as a leading integrated telco provider. During my tenure, we have had to adapt to rapid technological advancements and economic transformation. Despite the many challenges, we have continued to diligently serve the evolving needs of our customers and all stakeholders in an increasingly connected world," said Mokhzani in a statement.

Mokhzani has served the Maxis board for 15 years, first being appointed as a board director in 2009 and then as chairman in April 2021.

"The Board is currently assessing potential candidates and expects to complete the process and make an announcement on the new chairman at the appropriate time," the company said.

Hamidah Naziadin, a Maxis board director since 2014, has been appointed as interim chairman of the board starting July 1.

According to Maxis, Hamidah is an experienced and well-respected HR leader in corporate Malaysia. She currently serves as chairman of the Nomination and Remuneration Committee and a member of the Audit and Risk Committee.

First quarter financial results

Mokhzani's departure as chairman of the board was announced three days after Maxis issued its financial results for the first quarter of 2024 on Friday.

For the quarter ended March 31, 2024, the telco operator reported a 10.3% year-over-year increase in net profit, to 353 million Malaysian ringgit (US$75.25 million). The company said service revenues from its core consumer and enterprise businesses reached MYR2.19 billion ($467.06 million), up 3.7%.

The prepaid mobile business grew its subscriber numbers by 1.5%, to 5.77 million, and contributed MYR549 million ($117.03 million) in sales, while revenues from home connectivity were up 9.9%, to MYR244 million ($52.01 million), with customer numbers rising 11.2%, to 765,000 registered users.

Meanwhile, the operator's enterprise service revenues grew 6%, to MYR387 million ($82.5 million), which Maxis attributed to growing demand for connectivity and digital solutions services as well as the 4G and 2G wholesale agreement formalized in June 2023.

Maxis recorded capex of MYR106 million ($22.6 million), spending on network capacity expansion and IT digitalization. Maxis said its capex shows the operator's commitment to the Malaysian government 5G rollout.

It also ended the first quarter of 2024 with a healthy cash balance of MYR1.168 billion ($249 million) – nearly double its cash level of MYR569 million ($121.3 million) at the end of the fourth quarter of 2023.

Quoting analysts from MIDF Research, The Edge Malaysia reported the increase in the company's cash balance could be an indication that it is "getting ready its war chest."

"This could be in preparation to support the group's intention to build a second 5G network, which we view could potentially put quite a burden on the group's financial position," said MIDF.