XL Axiata ups 2011 CAPEX by 20%, plans to boost data services

15 Aug 2011

Indonesia’s third largest telco by subscribers, XL Axiata, has upped its capital expenditure for 2011 by 20% to USD600 million from USD500 million, of which roughly half will be ploughed into improving its data-based services capability. Local newspaper the Jakarta Globe quotes XL Axiata president director Hasnul Suhaimi as saying that the firm has spent USD300 million so far this year, with a focus on network building, including more base stations and fibre, and will spend the second half of the year improving network quality and increasing broadband access speeds. XL Axiata reported having 24,971 base transceiver stations (BTS) on its nationwide network at end-June, up from 22,191 BTS at end-2010.

The operator booked net profit of IDR1.52 trillion (USD180 million) in the first six months of this year, up 15% year-on-year, while revenue climbed 8% to IDR9.1 trillion. Hasnul noted that data services generated around 21% of XL’s total revenue in 1H11, compared with 53% for voice calls and 26% for SMS, although subscriber numbers dipped 3.7% to 38.9 million by mid-2011. ‘Our subscriber base fell during the last semester because the churn rate in the last few months was quite high at between 12% and 15%,’ the official said. With XL’s main rival Telkomsel increasing its mobile subscriber base by 7.7% to 102.3 million by 30 June, XL is still confident it will increase its own customer total to 44 million by the year-end and boost revenue by 10% y-o-y.

Indonesia, XL Axiata