XL Axiata booked a formidable financial performance

11 months ago . 1 min read
EC
Ester Christine Natalia
Senior Writer at Forbes Indonesia
XL Axiata booked a formidable financial performance

By Ulisari Eslita

Mobile telecommunication services company, PT XL Axiata (EXCL) reported a formidable financial result during the first quarter of the year. The company reported a net profit of Rp1.5 trillion or increased 25 times year-on-year (YoY), which was bolstered by Rp1.6 trillion tower sales.

In 1Q, EXCL sold 1,728 towers to PT Profesional Telekomunikasi Indonesia (Protelindo) and 1,054 towers to PT Centratama Menara Indonesia (CMI). According to Dian Siswarini, CEO of EXCL, the company is focusing on providing cellular and mobile internet service going forward.

At the same time, EXCL also booked Rp6,49 trillion of revenue or grew by 8.88% YoY. The increase was mainly attributed to robust data sales, which rose by 18.2% to Rp5.2 trillion. As many are aware, during the coronavirus pandemic, data traffic usage increase significantly, as people have to stay at home.

During the large-scale social distancing (PSBB) period, EXCL recorded a 15% increase in data traffic. Given that the government has banned travel of workers to their home regions, the company plans to increase its network capacity primarily in residential areas instead of the usual homecoming routes.

However, according to Bahana Sekuritas' recent research, EXCL’s subscribers fell by 5.4% QoQ as the competition is tighter in Java island. “This confirms our view that EXCL’s Java market share is relatively more vulnerable,” writes Giovanni Dustin, an analyst at Danareksa Sekuritas.

Consequently, EXCL has changed its Capex allocation to increase capacity and expand its network in the coming Ied Fitr holiday season. As of now, the company’s Capex will remain at Rp 7 trillion.

Recently, EXCL received a Rp 1.5 trillion of 5-year loan from Bank Central Asia. The loan would be used for investment, debt refinancing, and capital goods procurement.

EC
Written By
Ester Christine Natalia
Senior Writer at Forbes Indonesia
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Companies