JAKARTA (IndoTelko) – PT XL Axiata Tbk (XL) announced its audited results for 1H14 with strong overall performance as all major revenue segments delivered robust growth led by Data services.
XL revenue increased by 12% YoY to Rp11.6 trillion driven by a strong Data traction which Data revenue grew by 45% YoY, while Voice and SMS grew 5% in each services YoY. Usage revenue grew by 14% YoY and 16% QoQ.
President Director of XL, Hasnul Suhaimi said, “We continued to deliver a strong performance in first half of the year with Data remains to deliver strong growth and increase its contribution from 22% last year into 28% this year to our total usage revenue.”
Hasnul added, “Align with our focus in Data, we continue to see a strong traction in Data services with higher Data traffic that increased 158% YoY. This achievement is a result from our continuous effort to keep enhancing subscribers experience and providing a range of offerings which appeals to customers.”
XL continued to promote its Internet Unlimited data package with fair usage limits to stimulate further Data adoption amongst new Data users.
The package is well received among new Data users that can be seen from positive traction in first half 2014. Another opportunity that arises, XL continued to offer various bundling packages to encourage further Data usage with various handsets such as HTC One Mini, Blackberry Z3, Samsung Galaxy Trend Lite and others.
One of the efforts is by having exclusive partnership with Samsung with various collaborations such as exclusive handset bundling, join-roadshows/exhibitions, customer loyalty program and others. In order to provide convenience for subscribers to buy packages, XL collaborated with several non-traditional merchants as well as online shops to facilitate subscribers to reload and buy Data packages anytime and anywhere.
XL subscribers reached 62.9 million users, 16% increase compared to previous year. In addition, XL Data subscribers reached 32.2 million users or represent 51% of total base while smartphone users contributed 21% of total base and reached 13.3 million users as of first half 2014.
Hasnul said, ”To further support the higher Data traction and demand, we continued to expand our Node Bs and BTS nationwide. We added 993 Node Bs which brings us to more than 15,000 Node Bs we have deployed as of 1H 14, bringing total number of 2G and 3G BTS stood at 47,814 BTS. Our initiative on network transformation that we have deployed since early 2014 has resulted in positive improvement in network quality with 150% faster Data speed than before and higher capacity.”
In order for XL to prepare the rising in Data traffic in sub urban or rural areas, XL is reviewing the possibility for using U900 frequency. The technology will benefit XL to expand its Data services coverage in selected areas as an extension to the higher frequency currently used in dense area. The trials have been completed in the areas of Karawang and Gresik, and data points are currently being reviewed. While technically possible, the interference in the 900 band lead to an inferior data experience and therefore, XL would likely use this solution in selected areas with no interference only, if at all.
XL’s Digital Services continued to explore further opportunities to expand its Data business beyond traditional telecommunication services for daily needs and lifestyle.
Through Digital Services, XL is committed to contribute in the rise of local industry by establishing a number of Digital Services to support the Micro, Small and Medium Enterprises (SMEs) as well as creative industries. As a result of this commitment, M-Ads service has been utilized by more than 500 SMEs and the number has been growing with the development of SMEs in Indonesia. Xmart Village has been launched to create a transformative, innovative and effective solution to improve rural communities’ welfare in Indonesia. Several digital solution such M-Ads, Mobile Farmers, M-Banking, XCloud and others were integrated in this community service program.
Hasnul said, “We continue our focus for integration process and to focus on key milestones like billing & service migration, traffic migration and network integration. As a result, we have completed the billing & service migration in second quarter 2014 while Traffic migration and network integration have been completed from over 60% of Axis’ footprint. Overall, the integration process is well on track with expected completion by end of 2014.”
Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA) increased by 2% to Rp4.3 trillion with EBITDA margin at 37%. As a result of higher interest from additional loan related to Axis as well as higher Forex loss, XL recorded Rp483 billion loss in first half of 2014.
XL recorded a paid capex of Rp2.7 trillion that was funded through a combination of internally generated funds and debt. Total debt increased to Rp30.3 trillion from Rp17.1 trillion a year ago which led to an increase in Net Debt/EBITDA increased from 1.7x to 3.2x in first half 2014.(es)