EXCL : XL AXIATA 2014

The highest growth is information and communication sector

In 2014 the sales of smart phone at Indonesia was at 24.8 million units or it increased 62.1 % compared to sales in 2013. The growth in smartphone’s unit was in step with growth in related sector includes information and communication sector that increased more than 10 %. It was the sector with the highest growth in 2014.

In 2014 the digital industry had already advanced significantly as central bank issued its regulation about e-money.the regulation comprised of PBI no.16/8/PBI/2014 and SEBI no 16-11-DKSP. Many Banks collaborated with Telecommunication Company in period of 2013-2014 such as Telkom Indonesia launched e-money product in form of synergy of e-money and banking such as Mandiri e-cash, Rekening Ponsel and T-bank. Smartphone could be used as a wallet at recent.

Company Analysis

XL Axiata is one of strategic investment of Axiata group in indonesia. The parent company is axiata investment Sdn Berhad with 66.48 % of total share. Axiata group is a telecommunication company from Malaysia.

Hasnul Suhaimi, MBA graduate from Hawaii University has been as its CEO during several years. Mr. Hasnul got its degree in electrical engineering at Institute Technology of Bandung. In 2013 XL Axiata acquired axis and it claimed as the second biggest operator in Indonesia after Telkom. 

In 2014 the sales increased more than 11 % compared to revenue in 2013. The biggest contribution of the growth was given by cellular revenue. The data and VAS income of cellular revenue in 2014 grew 42.6 % compared to the same income in 2013. The subscriber may allocate more funds for browsing, operating social media and downloading video and audio. The trend may have been changing in XL’s income. It is possible that the high growth in VAS and data income were affected by HOTROD 3G+ technology that make internet connection faster.

Although the biggest revenue in cellular still came from voice segment, the VAS and data is expected growing faster in the next year. The gap between them was smaller.

In 2014 the company experienced loss as the infrastructure expense increased more than 36 % compared to infrastructure expense in 2013. The hike of infrastructure expense was contributed by the increase of license fee that was 64 % up. Its subsidiary, axis telecom indonesia, had purchased modern technology for operating mobile telecommunication service, it comprises GSM 900/DCS 1800 and IMT – 2000/ 3G.

More than 85 % of total asset of the company was Network equipment, the value of network equipment in 2014 stood at 54,581 billion rupiah.

In 2014 the XL Axiata had the third biggest revenue in Telecommunication Company. The second was indosat and the first was Telkomsel. However, XL Axiata had the highest growth of revenue.