XL AXIATA TBK - JAKARTA. Last year, the performance of XL Axiata Tbk (EXCL) was weak. This cellular telephone operator and internet connection provider have lost Rp 3.3 trillion.
However, the alarming performance has reversed in the first quarter of 2019. EXCL recorded a profit of Rp. 57.19 billion, up 270.64% from the same period last year.
Binaartha Sekuritas analyst, Muhammad Nafan Aji Gusta Utama, assessed that the increase in EXCL profit was based on improving the data service business. According to Nafan, XL Axiata's performance in the first quarter was enough to meet investors' expectations.
"This performance improvement is also the result of EXCL's consistency in developing the data service business," Nafan told Kontan.co.id, Tuesday (2/7).
Still, according to Nafan, EXCL intensively expanded its business by building several base transceiver stations (BTS) in Indonesia. He also saw EXCL being the fastest company to develop 5G networks, collaborating with Huawei.
The potential for EXCL's performance growth this year is significant. According to Nafan, more and more smartphone users, both in the lower middle class and upper middle class. This phenomenon will underlie the growth of XL Axiata data services.
Nafan noted that the increase in the EXCL share price had been started since December 2018. Two things pushed up the share price of this telecommunications company. In December there are window dressings, while in January there is a phenomenon of January effects.
Nafan set a target for EXCL prices at the level of Rp. 3,190 per share. Over the past six months, the price of EXCL shares has risen 49.49% to the level of Rp 2,960 per share.
