XL Successfully Complete Axis Intergration

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JAKARTA (IndoTelko)  – PT XL Axiata Tbk. (XL) announced its audited results for 9M-14 with growth in overall revenue segments driven by Data, the fastest growing segment. XL also announced that already complete integration process with Axis after merge few months ago.

“The integration of Axis has reached a significant milestone with the completion of the integration between XL and Axis well ahead of schedule. This is done through the successfully completion of the migration of billing system, integration of people, distribution as well as network and traffic migration. This was all done with minimal disruption to our operations and more importantly to our customers,” said President Director of XL, Hasnul Suhaimi.

In financial performance, Hasnul said, XL revenue increased by 11% YoY to Rp17.6 trillion with Data as the main engine of growth at 43%, followed by Voice and SMS with 4% growth in each services respectively.

“Data remains to deliver strong growth as we see continued strong demand for data in Indonesia. This has led data contribution to our total usage revenue increased from 23% in the previous year to 28% this year. Data traffic grew 136% YoY with Data subscribers reached 31.2 million users or 53% of the total base. We have seen strong growth in our data smartphone users with a penetration of 25% of our total base and reached 14.6 million users as of 9M14,” said Hasnul.

Extending XL’s successful Internet Unlimited package, XL launched Internet Super Unlimited which aims at new Data entry users and to stimulate further Data adoption. The package offers fair usage limits and allows early data users to experience Data before they move upwards to other data offerings to suit their data behavior and needs.

Bundling packages with various handsets continued to see encouraging results with higher Data usage in 9M14. XL continued to offer various bundling packages to attract customers using Data services with various handsets such as Nokia Lumia, HTC One Mini, Blackberry Z3, Samsung Galaxy Trend Lite and others.

XL collaborated with Facebook and Ericsson to improve data customers experience for Facebook application in several areas. This is in line with XL’s commitment to deliver a consistently better Data experience for customers.

XL continues to invest in Data infrastructure to ensure superior Data experience for our customers. As a result, we ended 9M 14 with 49,682 BTS including 15,429 Node Bs. In line with XL spirit to always be at the forefront of innovating operators to community, XL recently launched 4GLTE services in selected areas, the first in Indonesia.

During Lebaran season, XL has succeeded to manage the traffic increase with result in lower customer complaint as much as 20% decline compared last year and higher successful rate of connection as high as 99.94%.

XL’s Digital Services continued to be expanded by enhancing its services end-to-end and innovatively delivering customers’ needs. Through Digital Services, XL launched SIMPLY, Smart Electric Two-Way Meter Service, which is an innovative M2M service to simplify corporate customers for recharging the electric token.

XL Gudang Aplikasi, an entertainment portal with various types of contents such as Apps, Games, Music and Video, has received positive respond in the market with more than1 million users.

In other opportunity, Bank of Indonesia recently launched its program called “Cashless National Movement” that intended to increase public awareness to use non-cash transactions which is easy, safe and efficient. XL through, XL Tunai, as a mobile virtual wallet service, is actively supporting this new program. XL venture into the cloud business through XCloud has successfully received ISO 27001 The Management of Information Security certification to enhance its business.

 The monetization of towers saw the sale of 3,500 towers to PT Solusi Tunas Pratama Tbk. with a consideration of Rp 5.6 trillion at an attractive valuation multiple and creating value to our shareholders. It will benefit XL to increase its focus on its core mobile services whilst optimizing its operations and costs. The proceeds will be used to repay XL’s outstanding debt and achieve an improved capital structure.

Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA) decreased by 1% to Rp6.3 trillion with EBITDA margin at 36%. As a result of higher interest from additional loan related to Axis as well as higher Forex loss, XL recognized Rp901 billion loss as of 9M14.

Paid Capex of Rp5.3 trillion that was funded through a combination of internally generated funds and debt. Total debt increased to Rp30.4 trillion from Rp17.5 trillion last year which led to an increase in Net Debt/EBITDA increased from 1.8x to 3.2x in first nine months of 2014.(es)