XL Axiata back in black in 2019; net profit reaches IDR713bn on ‘record’ revenues

11 Feb 2020

Indonesian mobile operator XL Axiata reported record revenues of IDR25.15 trillion (USD1.83 billion) in FY 2019, up 9% year-on-year from IDR23.00 trillion, driven in the main by a 15% increase in service revenues and 28% growth in data service revenue. The carrier also reported that net profit reached IDR713 billion in the twelve-month period, reversing a loss of IDR3.29 trillion in FY 2018. Further, XL said earnings before interest, tax, depreciation and amortisation (EBITDA) climbed 17% on an annualised basis to IDR9.97 trillion, its highest ever so far, which it said was driven ‘by revenue and efficiency growth through the company’s focus on operational excellence’.

During the course of 2019 XL Axiata says it continued to expand its network coverage and capacity, especially in areas outside Java, boosting the total number of base transceiver stations (BTS) on-air to more than 130,000 by the year end, including more than 40,000 4G BTS. As a result, XL’s 4G service is now available in 425 cities/districts across Indonesia supported by its ongoing investment in its fibre-optic network to serve data traffic, which is increasing rapidly, as well as transmission, backhaul, network modernisation, and other network enhancements to serve the growth of data traffic. XL Axiata reported that 48.8 million subscribers had a smartphone by end-2019, up 11% compared to 2018, while the total number of XL Axiata customers reached 56.7 million.

XL Axiata’s President Director & CEO Dian Siswarini said: ‘We continue to focus and be consistent in implementing strategies that prioritise data services, which are now working so well that we print revenue growth above the industry average and strong EBITDA. Revenue growth was driven by growth in service revenue with data as the main motor. We succeeded in encouraging upselling programmes, by increasing the application of behaviour analysis to customer needs using the Omni Channel platform. Meanwhile, EBITDA which grew faster than revenue, and encouraged an increase in EBITDA margins, showed the superior efficiency of XL Axiata from an operational standpoint. The company’s current balance sheet is also in a very healthy position with a net debt to EBITDA ratio at 1.1×.’

Indonesia, XL Axiata