Profile

Industry Sector Infrastructure, Utilities & Transportation
Industry Sub Sector Telecommunication
Established 6 October 1989
Listed 29 September 2005
Listed Company Code EXCL
Listed Shares 8,526,276,611
Dividend Yes
Major Shareholders (>5%) Axiata Investments Sdn. Bhd. (66.70%)
Etisalat International Indonesia Ltd (13.28%)
Key Subsidiaries GSM One (L) Ltd
GSM Two (L) Ltd


Stock Quote XL Axiata - EXCL:

Business Summary

XL Axiata has been focused on cellular telecommunication services since obtaining a GSM operating license in 1996. In addition to its cellular business, it utilizes its network to accommodate other telecommunication services, monetize the value of passive infrastructure, such as leasing space on the tower and transmission capacity in the fiber optic transmission network.

XL Axiata started its business with a focus on Voice and SMS products as these were the basic needs of communication media. Over time, communication technology advanced, the industry landscape evolved and consumer’s behavior in communicating changed, resulting in the need for more advanced telecommunication services. Customer communication behavior has started to shift towards Data, in line with the wider range of data-capable telecommunication platform available in the market. XL Axiata and the other leading Indonesian telecommunication companies thus have had to adapt to these trends.


XL Axiata's Operational Highlights:

    2008   2009   2010   2011
  2012
  2013   2014
Number of Cellular Subscribers
  26.0   31.4   40.4   46.4   45.8   60.5   59.6
 – prepaid
  25.6   31.1   40.1   46.1   45.4   60.2   59.2
 – postpaid    0.4    0.4    0.3    0.3    0.4    0.4    0.4

in millions
Source: XL Axiata, Annual Report 2013

In September 2013 it was announced that XL Axiata will acquire Axis Telekom Indonesia, a national GSM mobile operator, for the price of USD $865 million. As the Indonesian telecommunication industry is crowded with many operators fighting over limited market and resources, the acquisition of another operator is one of the expansion strategies.


XL Axiata's Financial Highlights:

     2008    2009    2010    2011   2012   2013   2014
Gross Revenue  12,156  13,880  17,236  18,468  21,278  21,350  23,569
Operating Expenses
  6,930   7,501   7,771   8,912  11,224  12,606  14,837
EBITDA   5,132   6,205   9,287   9,348   9,745   8,659   8,623
Income before Tax
(loss)
   (69)   2,363   3,868   3,865   3,751   1,390  (1,070)
Net Profit (loss)
   (15)   1,709   2,891   2,830   2,744   1,056   (917)
Total Assets  28,393  27,380  27,251  31,171  35,456  40,278  63,706
Total Liabilities  24,085  18,577  15,536  17,478  20,086  24,978  49,746
Earnings per Share
(loss)¹
    (2)     237     340     332     324     121   (105)
Dividend per Share¹       -       -      107  129.88     135  

in billion IDR rupiah, except stated otherwise
¹ in IDR rupiah
Source: XL Axiata, Annual Report 2014


Future Outlook of the Indonesian Telecommunication Sector

Indonesia is unique in the sense that mobile phones are the primary tool for telecommunication. Not only with regard to telephony but also in terms of internet usage. Mobile phones are used as main tool device to access the internet by Indonesians. Mobile phone penetration has surged from 20 percent in 2005 to - currently - over 80 percent (although about 30 percent of Indonesian subscribers hold more than one SIM card). This indicates that the mobile phone subscription market is heading towards saturation; growth in voice and SMS revenue is stagnating. Internet penetration, however, is relatively low, thus having ample room for growth in the near and middle term future. High-speed broadband services are now the new focus of telecommunication companies. However, profit from call services remains to be the primary source of income for Indonesian mobile operators.

Indonesia is also unique in the sense that the country is predominantly a voice market due to low voice tariffs set by operators. Over 60 percent of total revenue in the mobile service sector is derived from voice services, while the remainder comes from non-voice or data services. The growing popularity of smartphones, however, contributes heavily to the growing data revenues. According to data from Frost & Sullivan, a consulting firm, smartphone penetration in Indonesia will exceed 50 percent in 2015 from only nine percent in 2012. The firm believes that the Indonesian market is in the early to middle stage of data usage increase.

Due to the promising perspectives of the mobile phone sector in the last decade, a number of companies are in fierce competition for market shares. Out a total of 11 telecommunication operators, five companies control a combined market share of around 90 percent. These five are: Telekomunikasi Indonesia - and its subsidiary Telekomunikasi Seluler (Telkomsel) -, Indosat, XL Axiata and Bakrie Telecom. Competition has brought tariffs for mobile phone services down significantly, while a new group of subscribers (from the poorer segments of society) has limited spending capacity. Instead, companies now focus on data services (broadband services) and value added service to attract subscribers, both of which are estimated to grow by 35 percent up to 2014. In 2011, there were around 70 million mobile phone data services users. This is estimated to increase to 160 million by 2015.


Future Projection XL Axiata's Financial Highlights:

      2012     2013     2014    2015F    2016F
Gross Revenue    21,278    21,350    23,460    25,526    27,732
EBITDA     9,745     8,659     8,623     9,373    10,213
Net Profit (loss)
    2,744     1,056   (891.0)     1,208     1,776
P/E Ratio (x)      14.2       38     (44.1)      32.5      22.1

in billion IDR rupiah, except stated otherwise
¹ in IDR rupiah
Source: Danareksa Sekuritas

Location

Contact Details

Jalan DR. Ide Anak Agung Gde Agung Lot E4-7, No. 1,
Kawasan Mega Kuningan, Jakarta 12950
Phone: +62 21 576 1881
Fax: +62 21 576 1880
Email: murni@xl.co.id
www.xl.co.id