The management of PT XL Axiata Tbk confirms the commitment to become the digital-focused company in Indonesia. This was stated by President Director of XL Axiata, Dian Siswarini on the public exposure of the General Meeting of Shareholders (AGMS) XL Axiata held in Jakarta, Monday (31/3). Therefore, in 2017, operators will enhance the development of the data network more robust and focused in the segmentation of the market.
Dian said of the variety of data and analysis of existing information, it believes future growth will come only from business data services and digital services. “Therefore, build capability on business data is the key for XL Axiata to be able to grow better in future,” she said.
Dian added that the traffic data service for the last 5 years continues to grow quite significantly. The increased use of data services is not independent of the availability of smart mobile devices (smartphones) with increasingly affordable prices by the community, as well as a wide selection of the packet data service that can be selected in accordance with needs and abilities. Data traffic is projected to continue to grow driven by the growth of the level of use of the 4G LTE fast internet service which is faster than the prediction.
At the operational level, XL Axiata will continue the implementation of the 3R strategy (Revamp, Rise, Reinvent) as the foundation of the business by improving the execution of the transformation in the year 2017. Furthermore, as a digital-focused company, XL Axiata will also perform the alignment of the plan of digitalization with the simplification of the business.
The process towards a digital enterprise will be done by XL in 3 categories. First, on the category of customer centricity, simplifying all product service which was previously quite complex becomes more simple and personalized according to the needs of each customer.
This time they are presenting a digital ecosystem across all platforms with the name “myXL”. Through all the digital platforms myXL consisting of social media, mobile app, customer service digital (e-care), website, forum, then the customer will more easily communicate with XL Axiata to get share information, related products service, handling complaints, to information is corporate.
Still related to customer centricity, on the side of the digital marketing and digital analytics, XL Axiata has also been to optimize the ability of the analysis of customer data to then be used for the provision of services that are tailored to what the customer wants digital nowadays. The service pack is YouTube Without the Quota.
Second, on the business process category, transforming complex business processes to be more efficient on execution and operations. Third, on the side of the foundation, the company will focus on providing digital infrastructure services supported with the workings and culture of digital culture. XL Axiata has been trying hard to provide quality infrastructure and is able to sustain the implementation of digital data services according to customer expectations.
To transform into a digital-focused company, XL Axiata budgeted capital expenditure (CAPEX) amounted to approximately IDR 7 trillion. The allocation of the capital expenditure in accordance with the focus of XL Axiata in 2017, which is to expand the 4G LTE network and improve the quality of the 3G network, especially outside Java. Therefore, in 2017, will be built about 17 thousand BTS 4G and about 16 thousand BTS U900 (3G) in different regions. Currently, the range of services XL 2G already covers 93% of the population, 3G is about 91%, and 4G is about 53%. With the construction of 16 thousand BTS U900 this year, then the service area of 3G will increase 6x more widely, especially outside Java, the quality of services also increased.
Didn’t Distribute Dividends
The General meeting of Shareholders (AGMS) 2017 PT XL Axiata Tbk approved the allocation of the use of the Profit for the Year Company for the financial year ended December 31, 2016 as general reserves required by the LAW No. 40 Year 2007 amounting to IDR 100 million and the remainder to be recorded in the Balance Retained to support the development of the company’s business.
President Commissioner of XL Axiata, Dr. Muhammad Chatib Basri said, “The Meeting also agreed that in accordance with the Dividend policy, the Company did not distribute dividends to shareholders with the consideration that the company posted a loss in the current year after adjustments. To that end, we ask that this decision can be understood by the shareholders.”
Meanwhile, the Director of XL Mohamed Adlan bin Ahmad Tajudin said the company’s revenue increased in semester two 2016 of core services (core business). But revenue YoY (year on year) declined due to the XL is the focus on the acquisition of the data and the declining sources of revenue from the tower.
Expressed, the data has to be the main contributors of increasing the income of XL Axiata, that is, from 35% in 2015 to 53% of total revenue in the core in 2016. Likewise with the ARPU (average revenue per user) increased although very slightly from the year 2015 IDR 34.000 be IDR 35.000 in 2016.
According to Adlan, the increase in ARPU is not separated from the increasing smartphone penetration in the network XL from the previous 42% to 63% in 2016. Meanwhile, the number of users also rose from 41.9 million in 2015 to 46.5 million.
These figures differ quite considerably if compared with the operator’s incumbent Telkomsel in 2016 has 173,920 million subscribers with ARPU of IDR 45 thousand. Even compared to its closest competitor, Indosat Ooredoo, still quite far away. The number of our cellular subscribers by year-end 2016 achieve 85.7 million customers.