XL’s network runs on GSM 900/DCS 1800,
IMT-2000/3G technologies and 4G LTE
and it holds several licenses, including
Closed Regular Network (Leased Line),
Internet Services Protocol (ISP), Voice
over Internet Protocol (VoIP), Internet
Interconnection Services (NAP) and an
e-Money (Electronic Money) license from
the Central Bank of Indonesia, which
enables XL to provide remittance services
to its subscribers. As the second largest
telecommunications company in the
market in terms of market capitalisation, XL
continues to innovate and is transforming
itself into a leading mobile data provider,
serving the burgeoning demand for data
amongst Indonesians. XL is dynamic in
managing and operating its business, and
fast in adapting to changes in the industry
and market landscape, to deliver excellent
service quality to its customers.
Business Review 2015
In 2015, XL implemented its Transformation
Agenda ‘3R – Revamp, Rise & Reinvent’ to
adapt to the changing market dynamics
and focus on value creation as it seeks
to build a more sustainable business for
the future. The transformation involves
Revamp to shift subscriber acquisition from
largely “no value” to “value” subscribers,
distribution strategies and an overhaul of
the product portfolio to improve yields.
Rise seeks to move the XL brand up the
value ladder via a dual-brand strategy with
Axis to address different segments of the
market. Reinvent is about transformation,
going beyond today’s business model.
The transformation is already delivering
positive results in terms of increased share
of higher value subscribers, increased
reload per subscriber number, a 46%
increase in Average Revenue Per User
(ARPU) from IDR28,000 in the fourth
quarter of 2014 to IDR41,000 in the fourth
quarter of 2015, stable data yields as well
as a rising share of modern distribution for
reload purchases.
There was an increase in core usage of
voice, SMS, data and VAS revenue of 2%,
with data remaining the fastest growing
segment rising by 14%, followed by voice
at 4%. SMS revenue showed a decline
of 17%, with gross revenue down 3%
due to the sale and leaseback of towers
in late 2014. XL’s revenue composition
continues to reflect consumer trends
which is becoming increasingly data-
centric. Capitalising on this, the Company
has focused its business transformation
strategies over the past four years on
continuous efforts to introduce mobile
Internet services as part of its core
offerings. With increasingly affordable
smartphones as the driving force for
rising smartphone use, XL continued to
drive adoption of 4G enabled handsets
by offering various bundling options for
both prepaid and postpaid customers.
Consequently, in 2015, XL’s smartphone
users grew to 17.7 million or 10% Year
on Year (YoY), increasing smartphone
penetration by 15.0 ppts to 42%.
To meet customer demand for better and
more diverse data services, the Company
introduced a host of data-centric products
and services in 2015. A milestone in 2015
was the launch of commercial 4G LTE,
following the reallocation of the 1,800
MHz spectrum. As of end 2015, XL’s 4G
LTE footprint has extended to 35 cities
and areas across Indonesia. In line with
this, it introduced HotRod 4G packages
offering 4G LTE quotas for customers to
experience high-speed quality internet
services.
XL Digital Services (XL DS) continues
being the driver of efforts in unleashing
the Indonesian mobile internet market
potential. A number of products delivered
results throughout 2015 as follows:
• Gudang Aplikasi
, an entertainment
application, increased its content and
applications for download to more
than 25,000, with more than 3.2
million registered users. XL DS also
launched video streaming services in
2015.
2014
2014
2014
2014
2014
2014
2015
2015
2015
2015
2015
2015
23,569
(804)
26
8,623
36.6%
59.6
123,824
22,960
(25)
34
8,393
36.6%
41.9
190,782
REVENUE
PAT
BLENDED ARPU
EBITDA & EBIDTA
MARGIN (%)
SUBSCRIBERS
DATA TRAFFIC
-2.6%
-96.8%
(normalised 71.3%)
-2.7%
-29.6%
RP Trillion
RP Billion
Rp ‘000
RP Trillion
Million
TB
BUSINESS
REVIEW
axiata group berhad | annual report 2015
098
