Page 33 - XL Axiata Integrated Anual Report 2020 ENG

2020 Integrated Annual Report
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customer needs in this segment by providing digital services, increasing the effectiveness
of collaboration between employees, and achieving efficiency in corporate spending.
We also launched a new brand in 2020 on the Company’s 24th anniversary. “Live.On” is our fully digital brand and it targeted
the more sophisticated digital consumers who demand a more distinctive digital experience. With Live.On, consumers could place orders for, purchase, activate, and control packages, as well as make contact with customer service, all within one application.
Besides Live.On, on the same day, we also launched New myXL with new features and
an improved user interface. It is part of our broader digitalization efforts across all forms of customer service. AxisNet, AXIS’s customer service, was also improved and had more features added. We recorded
a significant increase in sales through this channel – not only data plans, but also purchases of content subscriptions and gaming tokens.
On the sales side, we wholly updated the AXIS Mobile Grosir application for distributors and small retailers. We also created a digital platform to streamline the management of the sales force, sales channels, and partnerships, as part of the excecution of our long-term strategy concept: “Anyone can sell.” The pandemic has driven us to accelerate the implementation of this strategy. However, we have found the benefit of a more interactive and effective interaction with retailers.
We launched a new brand in 2020 on the Company’s 24th anniversary. “Live.On”. On the same day, we also launched New myXL with new features and an improved user interface. It is part of our broader digitalization efforts across all forms of customer service.
TRANSFORM FASTER TO EMERGE STRONGER – GIVING BACK TO THE NATION
PT. XL AXIATA TBK
The provision of all the services mentioned above requires reliable infrastructure. The pandemic does not prevent the Company from continuously building its network. The preparation of facilities and ecosystems for the adoption of 5G technology is also ongoing, including through the network fiberization process.
With all the initiatives we carry out, we believe the Company can create added value for all our stakeholders and maintain its position as the Strong #2 Operator. This year’s report theme, “Transform Faster to Emerge Stronger – Giving Back to the Nation”, aptly points to XL Axiata’s 2020 journey, which was colored by transformation, efforts to build better and continue to provide positive contributions to all communities.
PERFORMANCE SUMMARY
On financial performance, the implementation of a good business strategy is reflected in the recorded growth and the sound balance sheet. The cash balance increased was resulted from tower sale proceeds, while the Free Cash Flow (FCF) was also at the sound level of Rp6.5 trillion, a 76% increase compared to previous year.
Service revenue was recorded
at Rp24.13 trillion, grew 6% compared to the same period
in previous year. Data services grew by 11%, contributed 92% of total revenues. On EBITDA, we successfully recorded Rp13.06 trillion, or rose by 31% and total revenue up 3% from the previous period, with normalized net profit after tax of Rp679 billion. Operating expenses decreased by 15%, which mainly due to lower infrastructure costs as a result of PSAK 73 adoption and lower marketing costs following the increased intensity of our using digital channels.
We believe this achievement was the result of our focus
on providing the best data experience for customers. Data traffic increased 47% from 3,320 Petabytes to 4,869 Petabytes, accompanied by growth in the total number of customers from 56.7 million in the previous year to 57.9 million. Smartphone penetration as a percentage of total customers reached 89%, up from 88 percent in the previous quarter. Blended ARPU also increased from Rp35,000 to Rp36,000.
Furthermore, in 2020 we recorded a total of more than 144,000 Base Transceiver Stations (BTS) in operation, an increase of around 11% from the same period in previous year.