Jakarta, 28 July 2023. PT XL Axiata Tbk (XL Axiata) managed to achieve stronger growth throughout the first half of 2023. The company's financial performance grew double digit in the midst of a competitive and dynamic industry. During this period, XL Axiata continued to strengthened the execution of its convergence strategy through enhancing the fixed mobile convergence (FMC) business in all areas, including product, network, and IT infrastructure, to management. XL Axiata managed to achieve total revenue of IDR 15.78 trillion, growing by 12% higher than the same period last year (YoY). Digital data and service revenues reach IDR. 14.41 trillion, or around 91% of total revenue.
This strong growth couple with cost excellence has led to a positive impact on EBITDA which grew 14% YoY with margins increasing to 49%, to IDR. 7.65 trillion. In addition, XL Axiata also posted growth in net profit after normalization (NPAT), which amounted to IDR 658 billion.
President Director & CEO of XL Axiata, Dian Siswarini said, "XL Axiata has again managed to record a solid double-digit growth performance for Semester 1 of 2023. This is the result of our maximum effort in all aspects of the business to capture the market. We achieved double-digit growth in Revenue, EBITDA, and NPAT.”
In developing FMC services, Dian added, XL Axiata continues to strengthen its foundation as a company providing the leading convergence services in Indonesia. Not only in products that have converged, but also in terms of organization, network, IT, and distribution. Thus, until now, XL Axiata is still at the forefront of FMC services.
XL Axiata closed the first half of 2023 with a total of 58 million customers, with the achievement of blended ARPU (average revenue per user) which also increased from IDR 38 thousand in the same period the previous year to IDR 41 thousand. The increase in blended ARPU is certainly in line with the company's focus on acquiring and retaining productive customers.
In addition, the digital transformation strategy implemented by XL Axiata, including developing customer experience through the MyXL and AXISNet applications, continues to show its effectiveness. The two applications have delivered very strong results for the first six months of 2023. It has recorded more than 27 million customers that are actively using MyXL and AXISNet, with Monthly Active User (MAU) growth reached 77% since December 2021.
The level of usage of MyXL and AXISNet shows the increasing customer experience and monetization by XL Axiata through a better understanding of customer needs. More users on both apps will sharpen predictions about upcoming trends and customer behavior and make it possible to deliver the right offers to the right customers, at the right time.
One of the keys to XL Axiata's growth is the personalization of offers and services. This strategy will continue to be implemented throughout the first half of 2023. As a result, the net promoter score (NPS) data continues to increase significantly, thereby driving service usage and ultimately helping to increase revenue.
The results of implementing a digital-based strategy through data analytics have also enabled XL Axiata to invest in high-value areas and build networks, including to meet demands from all customer segments. Data analytics also allows XL Axiata to evaluate KPIs (key performance indicators) in all aspects related to customers, marketing campaigns, and customer loyalty so that the company can design the right strategy to face challenges and opportunities at the right time.
Network Performance Continues to Increase
On the network side, efforts to improve network quality that XL Axiata has continued have succeeded in improving network performance and customer experience. XL Axiata's commitment to strengthening the network is clearly reflected in the allocation of capital expenditure (Capex) of IDR 8 trillion, the majority of which is to support network expansion needs.
Until the end of June 2023, the total number of XL Axiata BTS reached 150,261 BTS (2G & 4G), with a total of 97,125 thousand 4G BTS units. The number of 4G BTS grows 9.8% compared to the same period the previous year with the level of connectivity to the fiber optic network reaching 59% (fiberized).
The continuous network investment and strategy have succeeded in improving the quality of the network experience to be better to support the higher usage. This is proven by traffic which grew by 21% YoY.
XL Axiata's financial position was healthy as of the end of June 2023, gross debt was recorded at IDR 9.97 trillion, with a gearing net debt to EBITDA ratio (including finance leases) of 2.67x. Net debt was recorded at IDR 8.4 trillion. XL Axiata does not have debt denominated in USD. 39% of the loans currently have floating interest rates and 61% have fixed interest rates. Free Cash Flow (FCF) is at a healthy level, with an increase of 44%, to IDR. 4.50 trillion.
Continues to Lead in FMC Service
Since the last two years, XL Axiata has launched a vision to become the "Leading Converged Operator in Indonesia". To realize this vision, XL Axiata also continues to work hard to build a strong foundation through a converged organization, as well as IT, network, and distribution. As a result, now all of these aspects have converged, placing XL Axiata at the forefront of this new business.
The building of this strong foundation was also implemented through the establishment of the Serve Co and Fiber Co entities. XL Axiata will carry out its duties as a Serve Co which will handle all FMC and FBB services. Link Net will carry out Fiber Co's duties by providing a fiber network to support the two services.
It is hoped that the closer collaboration between XL Axiata and Link Net will increase the penetration of convergence services in Indonesia. In the next five years, both parties will expand service coverage to 8 million home passes. XL Axiata and Link Net has signed a cooperation agreement for the development and operation of the first 1 million homes passed network by reaching several cities/regencies in Indonesia.
With the addition of 1 million homes passed, XL Axiata wish to be able to accelerate the convergence penetration of XL SATU. In this collaboration, XL Axiata has prepared plans and designs for market targets that can serve the needs of convergence services. Meanwhile, Link Net will design a network and capacity that can meet the needs of XL Axiata's target market.
XL Axiata is now continuing to develop products for the corporate and small and medium enterprises (SMEs) segments. The development of FMC services for corporations and SMEs will be combined with the increasing demand for Information and Communication Technology (ICT), Internet of Things (IoT), and Big Data services.
Until the end of June 2023, the penetration rate of XL Axiata's FMC services has reached 56% where XL Home customers have switched to become XL SATU customers, which means showing the strong demand for this convergence product. Currently, XL Axiata also has XL Home & XL SATU fiber coverage in 63 cities/regencies.
During the 1st semester of 2023, XL Axiata has also won awards from within and outside the country, including The "Best Companies to Work for in Asia - Indonesia Chapter, and Digital Transformation" awards from the HR Asia Best Companies to Work for in Asia Awards 2023, Broadband Telecom Company of the Year - Indonesia and Marketing & Brand Initiative of the Year – Indonesia for XL Home from Asian Telecom Awards 2023, and the award for Main Index, High Growth and High Market Capitalisation - Index TEMPO- IDNFinancials 52.