EXCL 2015

DUAL BRAND STRATEGY

In 2013 the company acquired axis, its competitor, to strengthen its position in the market. It could be seen in its asset, it increased sharply in 2014, from idr 40.3 trillion in to Idr 63.6 trillion. The company completed the acquisition of Axis on April 2014.

In 2015 the company may revamp its positioning in the market with dual brand strategy, the company opted to develop Axis brand in the same segment. Axis has brand image as less cost product for subscriber, the company launched axis brand with new form, and color of its brand name is changed in to purple. The company did not erase the brand from its portfolio.

While XL brand tends to recognized as innovative product for the customer, it always provides new technology and product in almost every year. In 2015 there were many innovative products that offered such as M-Fish, advanced M-Ads, Sisternet, E-learn future leaders.Ladyjek and Digibiz.
Among of its innovative product tend to be made for specific market such as Sisternet and Laadyjek are produce for female. In the future the company may choose to provide more product s for female to win the competition with other competitor such as Telkom, Indosat and 3.

In 2015 company experienced 3% declined in its sales due to decline in several segment of business compared to sales in 2014. One of segment which dropped was income from lease. On other hand, the company was able to increase its ARPU (average revenue per user) from Idr 28,000 in to idr 41,000 or increased more than 46 %.

The company added its infrastructure facilities in 2015, it comprised 6,770 BTS and 863 km of fiber optic transmission. XL is also planning to modernize its infrastructure technology to support its business.

In 2015 total asset dropped 7 % in comparison to total asset in 2014, the decrease was occurred because of decline in cash and cash equivalent, the company paid several debts off.  In 2015 the company ought to rise fund from sukuk.
The net loss in 2015 was occurred because of the depreciation of rupiah currency to US dollar.

Cooperation with other companies
XL Axiata has launched product of Rekening HP which was cooperated with Bank Mandiri in 2015. The company also cooperated with its ally, CIMB, launched on account powered by XL. The company focus to acquire high value customer.

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.