Page 50 - XL Axiata Integrated Anual Report 2020 ENG

48
2020 Integrated Annual Report
The Company also successfully strengthened its EBITDA by 31% yoy
to Rp13.06 trillion.
Operating expenses decreased by 15% to Rp12.95 trillion.
to the previous year’s portion of 91%. The increase in service revenue was mainly supported by data services, which grew 11% yoy, reaching a 92% share of total service revenue.
The Company also successfully strengthened its EBITDA by 31% yoy to Rp13.06 trillion. This encouraged the EBITDA margin to increase
from 40% in the same period of the previous year to 50%. Meanwhile, the Company’s normalized profit for the year stood at Rp679 billion.
The growth of the Company’s profitability in 2020 was derived from its agility in implementing operational excellence in the financial area. Operating expenses overall declined by 15% to Rp13 trillion.
The decrease was due to, among other factors, lower infrastructure costs, namely a 30% decrease yoy to Rp4.3 trillion resulting from the adoption of PSAK 73 in 2020, a 25% yoy decrease of interconnection fees and other direct costs to Rp1.1 trillion, mainly caused by lower interconnection as a result of lower traffic on voice service usage, and
a 8% yoy decrease of marketing costs to Rp1.8 trillion following the Company’s greater use of digital marketing channels.
On financial position, the Company was able to maintain a sound balance sheet with a higher cash balance after receiving additional sales of Rp1.99 trillion from towers. Free Cash Flow (FCF) is also at a sound level of Rp6.5 trillion, an increase of 76% yoy.
A GLANCE AHEAD
In addressing the future and maintaining sustainable growth of financial performance, the Company fully committed to prepare various anticipatory measures. Among them was the securing of commitment facilities from several banks to ensure liquidity. Moreover, the Company does not have loans in US dollar denominations, and 67% of loans, bonds and sukuk have floating interest rates with different maturities. Meanwhile, the ratio of gross and net debt to EBITDA was controlled to a better level, decreased to 0.7x and 0.5x, respectively.
The Company has also become the first telecommunications company in Southeast Asia to use the SAP S/4 HANA Cloud as part of the Company’s strategy to become a pioneer in the
telco industry and to lead digital transformation for end-to-end operations. The advantages of the SAP S/4 HANA Cloud include a simpler and more efficient
IT infrastructure capable of providing a single source of truth for financial or other corporate data and it assists management in making more strategic decisions through input from financial dashboards that provide real-time insights, hence allowing more agility in responding to markets.
PT. XL AXIATA TBK
TRANSFORM FASTER TO EMERGE STRONGER – GIVING BACK TO THE NATION
MANAGEMENT DISCUSSION & ANALYSIS