XL Axiata Raup Revenue Of Rp29.2 Trillion In 2022

JAKARTA - The year 2022 is an extraordinary period for XL Axiata with consistent executions of digital transformation strategies and convergence services. In general, throughout 2022, XL Axiata managed to record higher business growth from industry.

XL Axiata's total revenue is IDR 29.2 trillion, growing by 9 percent higher than the same period last year (YoY), supported by the provision of sustainable products and qualified network quality. Meanwhile, total data and digital service revenues reached IDR 26.6 trillion, or 91 percent of the company's total revenue.

All of these growths had a positive impact on EBITDA which grew 7 percent from the same period the previous year (YoY) with a margin of 49 percent, to IDR 14.2 trillion. In addition, XL Axiata also posted net profit growth after normalization (NPAT) which increased by 1 percent, which was IDR 1.1 trillion.

XL Axiata's President Director & CEO, Dian Siswarini said, throughout 2022, Indonesia's telecommunications industry was colored by quite intense competition, especially in the fourth quarter period.

"The data consumption by XL Axiata customers remains strong, mainly driven by video streaming, which we expect will continue in 2023. In addition, our massive investment in network infrastructure, both for the expansion of roofs, capacity building, digitization, service personalization and optimization of spectral use, has been able to improve customer experience, thus encouraging increased service traffic," said Dian in his statement, Monday, February 20.

In 2022, XL Axiata also managed to maintain customers with a focus on increasing the experience and convenience of better customers, so that during that period the company managed to increase the blended APPU (average revenue per user) to IDR 39 thousand from IDR 36 thousand in the previous year period, with total customers reaching 57.5 million customers.

Dian added, one of the keys to XL Axiata's growth is the personalization of offerings and services. The results of personalization strategies supported by digitization and improving network quality, managed to significantly increase the NPS (Net Promoter Score) value by 4.5x, thus encouraging service use and ultimately helping to increase revenue.

According to Dian, the results of digital-based operational implementation through the application of data analytics also allow XL Axiata to invest in high-value areas and build networks to meet the demand for the needs of all customer segments.

With this data, this analysis also allows XL Axiata to evaluate KPI (key performance indicator) 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.

XL Axiata also carries out a digital transformation strategy 2.0 to develop customer experience through the MyXL and MyAxisnet applications. Both applications have provided significant results in December 2022, with around 25 million subscribers active using MyXL and MyAxisnet, with active user growth reaching 62 percent.

With the app it can sharpen predictions about future trends and customer behavior, as well as make it possible to make the right offer to the right customer, at the right time as well.

In line with the company's vision of becoming the leading convergence operator in Indonesia (#1 Converged Operator in Indonesia), XL Axiata also continues to strive to introduce convergence services to the wider community, while increasing its benefits. By the end of 2022, 37% of XL Home subscribers have switched to XL One customers, which means showing strong demand for this convergence product.

Linknet acquisitions carried out in 2022 will also greatly support the development of this convergence product in the future. In addition, XL Axiata has also completed the acquisition of Hypernet. This step will further strengthen XL Axiata's portfolio on corporate services (B2B). Continuing the acquisition of Linknet, XL Axiata and Linknet have also launched collaboration products in the third quarter of 2022.

Network Performance Continues to Increase

On the network side, network quality improvement initiatives have successfully led XL Axiata to close 2022 with victory in four opensignal independent survey categories for the December 2022 period. For the second time in a row, XL Axiata is the best among all Indonesian operators for the categories of download speed experience, video experience, game experience, and voice application experience. For download speed, XL Axiata recorded an average of 20.8 Mbps, an increase of about 11% compared to July 2022.

XL Axiata is serious about strengthening and expanding networks, especially outside Java with capital expenditure (capex) of a total of IDR 9 trillion. Until the end of 2022, the total number of BTS (2G & 4G) XL Axiata reached 144,768 BTS, with a total of 91,632 4G BTS units. The number of 4G BTS increased 19% compared to the same period the previous year, with the level of connection with optical fiber network reaching 54 percent (fiberized).

Meanwhile, the 3G technology restructuring process (refarming) which continues to be implemented until now only leaves less than 1,300 BTS. Investments and network strategies throughout 2022 have succeeded in improving the quality of better network experience so as to increase higher usage. This is proven by a traffic that grew by 22 percent YoY.

To strengthen the company's financial structure, in 2022 XL Axiata has managed to raise a total of around IDR 8 trillion, IDR 3 trillion each through bonds and sukuk in September 2022 at a very competitive price, and around IDR 5 trillion through the rights issue.

"The funds that we managed to raise have strengthened the balance sheet and allowed us to maintain the AAA ranking of the investment value we currently have. In addition, we have also balanced our debt profile so that we are better prepared to face potential interest rates increases in the future," Dian added.