Data service becomes the major contributor to PT XL Axiata Tbk (XL Axiata)’s gross revenue that increases 7% throughout 2017 compared to that of 2016. As of the end of 2017, this telecommunication firm records gross revenue amounting Rp22.9 trillion, up 7% year-on-year compared to that of 2016.
In a press release that we accepted last week, XL Axiata says the added gross income is supported by service revenue sector that rises 10%. The number of XL customers goes up 15% year-on-year to have reached 53.5 million, 52.8 million of whom are prepaid ones while the remaining 700,000 are postpaid customers.
On the other hand, earnings before interest, tax, depreciation, and amortization or EBITDA within one period ending at the end of 2017 are up 3% year-on-year to have recorded Rp8.3 trillion thanks to the revenue growth. Therefore, the firm’s balance sheet remains solid as its debt ration toward EBITDA is 1.5 x.
The performance is mainly given by three factors, which are “Dual Brand” strategy, continued network expansion to other regions with high demand and strong growth in revenue and traffic from outside Java.
XL Axiata President Director Dian Siswarini said,”The 2017 achievement shows our business transformation since 2015 has been fruitful and successful in strengthening data service business as the firm’s foothold. One of the indicators is the income from data service that contributes more to the company’s revenue, now 69% from 48% last year.”
“Dual Brand” strategies, “XL” and “AXIS” becomes one of the successful strategies following the rise of the consumers who use smartphones that make data service traffic going up. Brand “XL” is capable of attracting users, mostly workers, either those working at offices or those working in the informal sector. Brand “AXIS” is able to catch attention from youngsters.
As many as 38.3 million XL customers or 72% of total consumers have used smartphones. The number is up 32% from that of last year thanks to improved data service quality and data network set-up. As of the end of last year, 73% of total customers actively use data package that later boosts data service traffic by twofold or up 14% year-on-year.
In terms of network, 4G LTE XL Axiata now reaches 360 cities/regencies across Indonesia thanks to more than 17,000 4G BTS and almost 46,000 3G BTS. The number of XL Axiata’s BTS by the end of 2017 is 101,094, up 20% year-on-year. Throughout last year, XL Axiata establishes more than 16,000 BTS. Sixty-percent from the total BTS set up last year are located in regions outside Java. Data establishment outside Java is proven to have increased service quality and network region expansion. As such, the company offers innovative packages that are welcome well to consumers. Data traffic from consumers outside Java then rises.
Some innovative data service products with better benefits are experienced by XL consumers, either those who use XL or AXIS. For XL consumers, they can enjoy ‘XTRA COMBO’ with YouTube quote aside from basic data quota, 4G bonus quota and Any-Net minute allocation. There is also “Xtra Combo PRIMA’ package and ‘XL Super Ngobrol’ first-time card package where which the latter provides free and unlimited on-net calling and short message service for new consumers.
For AXIS consumers, 2017 marks the launch of “AXIS HITZ” that offers benefits, such as maximum access for using WhatsApp, LINE and BlackBerry Messanger chatting applications. There is also AXIS Internet On The Go or AIGO voucher that makes consumers easier to reload wherever they are without feeling worried they don’t find stores that sell pulse or when data package or pulse runs out. This voucher can be used to fill data package as long as the voucher is valid.
XL consumers can make use of bundling program with XTRA Combo data package that makes them able to buy smartphones at cheaper prices. The consumers will get cashback from XTRA Combo package that can be later used as a discount to purchase smartphones.
