XL Axiata Posts 30% Jump in Net Profit
Jakarta. Telecommunications operator XL Axiata (IDX: EXCL) reported a 6 percent increase in revenue to Rp 25.37 trillion ($1.61 billion) for the first nine months of the year, while net profit surged 30 percent year-on-year to Rp 1.31 trillion from Rp 999 billion in the same period last year.
EXCL’s growth was also reflected in a 13 percent YoY increase in EBITDA, reaching Rp 13.3 trillion with an EBITDA margin of 52.4 percent. Data and digital services contributed approximately Rp 23.38 trillion, accounting for around 92 percent of total revenue for the nine-month period.
XL Axiata’s management remains optimistic about the potential for Fixed Broadband (FBB) and Fixed Mobile Convergence (FMC) services. President Director & CEO Dian Siswarini acknowledged the challenging telecommunications landscape, especially in Q3 2024, marked by intense competition and weakened consumer purchasing power.
“Despite the challenges, we achieved positive profitability growth,” Dian said on Thursday.
Looking ahead, Dian said that global geopolitical tensions and economic pressures on Indonesian consumers will likely persist.
"We are committed to maintaining growth in the coming period, and we are confident in our ability to do so," she added.
One of EXCL’s strategic initiatives for future revenue growth is expanding its home internet service. The company plans to accelerate the growth of its FBB service, targeting over 1 million subscribers.
With the recent acquisition of First Media customers, XL Axiata is now Indonesia’s second-largest internet provider, with FBB network coverage of 6 million homes across more than 127 cities.
“We also provide customers with access to various entertainment content, underscoring our commitment to enhance services beyond FBB and advance convergence services to the next level,” Dian said.
By the end of September 2024, EXCL’s customer base had reached 58.6 million, with a blended Average Revenue Per User (ARPU) of Rp 43,000, in line with the company’s focus on attracting and retaining high-value customers.
On the cost side, XL Axiata maintained stability, reducing sales and marketing expenses yoy through digitalization efforts. Other costs, such as interconnection and direct expenses, also decreased year on year, although regulatory costs saw a year on year increase. Overall, annual operating costs were kept below the rate of revenue growth.
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