MAXIS BERHAD: A Financial Rollercoaster Amidst Market Turbulence

In the ever-volatile world of finance, MAXIS BERHAD, a Malaysian multinational conglomerate, finds itself at the center of a financial storm. As of May 20, 2025, the company’s stock has experienced a significant downturn, marking a fourth consecutive day of losses. This decline is not an isolated event but part of a broader trend affecting major blue-chip stocks in Malaysia, including the likes of Maybank.

Market Dynamics and MAXIS BERHAD’s Performance

The Malaysian stock market, as reflected by the FTSE Bursa Malaysia KLCI, has seen a notable dip, closing at 1548.87 points, a decrease of 7.27 points or 0.47%. This downturn has placed MAXIS BERHAD in a precarious position, with its stock price falling to MYR 3.56, down 12 sen. The company, known for its extensive operations in financial services, insurance, wealth management, and retail banking, is grappling with the broader market’s instability.

Factors Influencing MAXIS BERHAD’s Stock

Several factors contribute to the current financial landscape for MAXIS BERHAD. The company’s recent financial performance, while showing a net profit increase of 5.10% in the first quarter of the fiscal year 2025, has not been enough to buoy its stock price. This increase, amounting to MYR 3.71 billion, was primarily driven by user growth and effective cost management. However, challenges such as a 3.4% decline in service revenue, attributed to seasonal factors and adjustments in the MAXIS Device Assurance Plan, have impacted average revenue per user (ARPU) for both prepaid and postpaid segments.

Looking Ahead: MAXIS BERHAD’s Strategic Outlook

Despite the current market challenges, MAXIS BERHAD remains optimistic about its strategic direction. The company has announced a single-tier tax-exempt dividend of 4.0 sen per ordinary share for the financial year ending December 31, 2025, signaling confidence in its financial health and commitment to shareholder returns. Furthermore, the management’s targets for the fiscal year 2025, including low single-digit growth in service revenue and EBITDA, alongside capital expenditure not exceeding MYR 1 billion, reflect a cautious yet forward-looking approach.

Conclusion: Navigating Through Uncertainty

As MAXIS BERHAD navigates through these turbulent financial waters, the company’s resilience and strategic planning will be crucial. The broader market’s volatility, coupled with internal challenges, presents a complex landscape. However, with a focus on steady growth in postpaid services and fiber connectivity, along with prudent financial management, MAXIS BERHAD is poised to weather the storm. Investors and stakeholders alike will be watching closely as the company charts its course through these uncertain times, hoping for a return to stability and growth in the Malaysian financial sector.