XL Axiata’s shares fell in the first quarter of 2022. However, they are still able to attract even though profits are down. So what is the reason this happened?
As many people know, XL Axiata is one of the most popular providers in Indonesia. In fact, this is also because there are quite a lot of consumers.
However, in the first quarter of this year, its net profit was below forecast analysis. It is even known that the company’s net profit fell to Rp 139 billion.
Where previously showed a figure of Rp 320.5 billion. this can be seen if the decrease in net profit reaches 56.6% year on year (YOY). Even though XL Axiata’s shares have fallen, investors don’t need to worry about current conditions.
The company has made efforts to uniform 4G-based customers by turning off 3G BTS and building a digital communication channel. This is also clearly stated by BRI Analyst Danareksa Sekuritas, Niko Margaronis.
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Reasons Why XL Axiata’s Shares Drop
XL Axiata’s net profit this year has recorded a decline compared to the same period last year. Based on the financial statements, EXCL’s profit was supported by the increase in the company’s revenue.
During the first 3 months of this year, the company’s revenue reached Rp 6.74 trillion. This information is up 7.92% YOY from the position in the first quarter of 2021, which shows a figure of Rp 6.25 trillion.
The increase in revenue came from data entry whose value reached Rp. 5.69 trillion. Even XL Axiata also recorded non-funded revenues of Rp 497.08 billion and interconnection services of Rp 126.28 billion.
The company’s revenue from providing telecommunications services increased from Rp 238.66 billion a year ago to Rp 353.49 billion at the end of March 2022.
However, along with this, the company also experienced an increase in expenses of 12.82% to Rp 5.99 trillion. This is the reason why the company’s net profit decreased not as much as last year.
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Handling Steps from XL Axiata
Considering the decline in XL Axiata’s shares does not mean the company will not immediately address it. The steps taken by the company are to disrupt the Indonesian market.
Although it has become a common thing that happens, but it is good as an end-to-end consumer solution. By the end of the year the company had benefited from the competition as a joint participant in telco acquisitions, mergers, and consolidations.
Even XL Axiata companies can also benefit with a stronger capital expenditure intensity. XL Axiata’s estimated revenue will reach IDR 28.4 billion throughout 2022.
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Net profit income reached Rp 1.47 trillion. BRI Danareksa Sekuritas also made XL Axiata shares still able to survive as top picks by maintaining the buy recommendation to reach the target of Rp 4,250.
As of the end of March 2022, XL Axiata recorded an asset value of Rp. 71.84 trillion. The value is slightly lower if you compare it with last year. Even the net profit value of XL Axiata shares fell to Pr 13 per unit. (R10/HR-Online)
Source : HarapanRakyat.com