XL reports Q1 net loss

13 May 2009

Indonesian mobile operator PT Excelcomindo Pratama (XL) yesterday reported first-quarter net losses of IDR306 billion (USD29.1 million), reversing a net profit of IDR368 billion a year earlier, and blamed the swing on forex losses and interest expenses, Dow Jones Newswires reports. The nation’s third largest mobile operator by subscribers said the sharp drop in net income was largely the result of higher foreign exchange losses and interest expenses. As at 31 March 2009, the cellco had IDR643 billion in foreign exchange losses due to the weak rupiah. XL also booked IDR383 billion in interest expenses, significantly higher than a year earlier. ‘Excluding foreign exchange losses and interest expenses, we could have had a net profit by the end of March of around IDR15 billion,’ said XL President Hasnul Suhaimi. The operator’s two main shareholders, Axiata (formerly TM Malaysia International) and Etisalat International, have revealed their willingness to add USD600 million to XL’s capital later this year, in a bid to improve coverage and stimulate the firm’s business, he added.

Indonesia, XL Axiata