XL Axiata’s 2017 profits flat at IDR375bn, but claims success in its business transformation strategy

8 Feb 2018

Indonesian mobile network operator (MNO) XL Axiata reportedly booked net profits of IDR375 billion (USD28 million) in the year ending 31 December 2017, down slightly from IDR376 billion in FY 2016. IndoTelko quotes its president director Dian Siswarini as saying that last year the MNO recorded revenues of IDR22.87 trillion, up 7% when compared to the figure of IDR21.34 trillion it booked the previous year. Dian told reporters that the success of XL Axiata last year was primarily the result of it offering the right ‘dual-brand’ strategy, continuing network expansion into areas with high demand, and strong growth in revenues and traffic outside Java. He then went on to claim that XL’s achievements in FY 2017 show that the business transformation the company put in place in 2015 is the right one, and has helped to strengthen XL’s data services business as ‘the foundation of the company’. Indeed, according to Dian revenue derived from its data services business contributed 69% of revenue, up from 48% in FY 2016. Earnings before interest, tax, depreciation and amortisation for the full year stood at IDR8.3 trillion, up 3% when compared to FY 2016.

XL Axiata reported that smartphone penetration reached around 72% (or 38.3 million) of the total base of 52.5 million subscribers at end-2017, up 32% year-on-year, fuelled by the constant improvements in the quality and availability of data services and data network development. Monthly blended ARPU, meanwhile, stood at IDR34,000, broadly unchanged y-o-y, although data traffic doubled in 2017, it said. As at 31 December 2017 XL Axiata’s 4G LTE network was live in 360 cities/regencies in a number of regions across Indonesia, supported by more than 17,000 base transceiver stations (BTS) and nearly 46,000 3G BTS. Meanwhile, in total, the MNO had 101,094 BTS on-air, up 20% y-o-y thanks to the deployment of some 16,000 BTS during the year.

Indonesia, XL Axiata