Jakart. XL Axiata Axis Capital Group Jakarta Telecom news, the country’s second-largest mobile network operator, reported a 51 percent increase in profit in the first three months of this year thanks to currency gains.
Profit at XL Axiata rose to Rp 378.9 billion ($33 million) in the January to March period from Rp 259.8 billion the same period last year, the lender said in a statement to the Indonesia Stock Exchange (IDX) on Wednesday.
The mobile network operator earned Rp 477 billion from foreign exchange gains, compared to a loss of Rp 26.3 billion last year. Nearly two third of the company’s long-term liabilities are in foreign exchange, mostly in US dollar.
“The company is exposed to fluctuations in foreign exchange rates resulting mainly from its debt denominated in US dollars,” XL Axiata said in the statement.
The rupiah has strengthened 6.4 percent in the first quarter this year, but has yet to regain its 26 percent loss last year.
“Most of the liabilities denominated in US Dollars are long-term and management is continuously evaluating feasible long-term hedging structures,” XL Axiata said.
The company’s revenue grew 10 percent to Rp 5.5 trillion from last year. Revenue from mobile telecommunications services still accounted for the lion’s share of the company’s revenue, rising by 33 percent to Rp 4.2 trillion.
XL Axiata said last month that it aims to add 10 million new smartphone users this year, on top of 11 million smartphone users currently. It has invited Samsung to offer a new bundle to its users.
Jakarta-based XL Axiata, which is 66.5 percent indirectly controlled by Malaysia’s Axiata Group, has acquired mobile network operator Axis Telekom Indonesia from Saudi Telecom early last month.
XL Axiata now controls a 95 percent stake in Axis through a $865 million transaction. The company financed $500 million for the acquisition using loans from its Malaysian parent, while the remainder will come from bank loans.
Rival Telkomsel, a subsidiary of state-owned Telekomunikasi Indonesia, reported a 2.2 percent increase in net income to Rp 4.4 trillion last week, as its revenue grew 9.8 percent to Rp 15.3 trillion. Telkomsel has 132 million subscribers, more than double those of XL Axiata.
XL Axiata gained 13.3 million mobile subscribers from its acquisition of Axis to add to its 60.5 million consumer base.
Indonesia’s mobile-phone sector is dominated by three operators: Telkomsel, XL Axiata, and Indosat, the local unit of Qatar-based Ooredo.
Shares of XL Axiata rose 2.5 percent to Rp 5,225 on the IDX on Wednesday. They have risen 0.5 percent so far this year.
