Indonesia’s third-largest cellular phone operator, PT XL Axiata, says it is targeting 15 percent revenue growth this year by boosting its value-added services for GSM customers.
Last year the company’s revenue totalled Rp 13.88 trillion.
“We expect 15 percent growth [this year]. We will still focus on the previous business areas, such
as GSM card sales, not only for voice [communications] but also data,” XL president director Hasnul Suhaimi said on the sidelines of the company’s shareholder meeting in Jakarta.
Husnul said XL was exploring value-added services for its GSM clients, particularly in data services, the revenue of which grew by 4 percent in 2009.
The company also plans to improve its networks and capacity.
It currently has 8,000 base transceiver station (BTS) towers throughout Indonesia, of which 4,300
are leased by other telecommunications operators.
Hasnul said this year XL would add around 1,500 BTS units to strengthen its network coverage.
The new units would cost the company between 20 and 25 percent of its total capital expenditure this year.
For 2010, XL has allocated US$400-450 million to improving its network, using its own funds.
Last year the company gained Rp 1.7 trillion in net profits, up from Rp 15.1 billion in 2008 when it suffered from currency losses.
At the shareholder meeting on Friday, the company decided to retain its profit from 2009 to strengthen company’s capital instead of dividing it among shareholders.
“The shareholders meeting has agreed to write down the 2009 net profit as retained earnings,
to support the company in its business expansion,” Hasnul said, adding that the meeting also had agreed to spare a portion of the earnings (Rp 100 billion) for stand-by general funds.
The shareholder meeting also has allowed one of the XL directors, Joris de Fretes, to resign from the company. Joris, who previously was the corporate services director, resigned due to his age.
“Joris wants to spend his time with his family after having worked with us for seven years,” Hasnul said.
Last year the number of XL’s conventional and prepaid subscribers grew by 21 percent and 49 percent, to 31.4 million and 31.1 million.
