XL Axiata extends rally after expediting 2G assets reduction

  • Business
  • Friday, 15 Feb 2019

File pic of XL Axiata

JAKARTA: Shares of XL Axiata surge the most since June as the firm is expediting the reduction of its second generation assets, in a hope to lower depreciation charges, improve margins and profitability.

The company reported 2018 net loss on Friday which was the biggest since at least 2002.

XL Axiata plans to spend 7.5 trillion rupiah in capital expenditure this year, as it will begin the trial of 5G mobile phone technology, the firm says in a statement.

Shares +19%, steepest intraday since June 4 with volume 6.5 times of three-month average

EBITDA margin improves to 37% in 2018 from 36% in previous year: statement

"Excluding the one-off charges from depreciation, the earnings were pretty decent,” according to Kenji Fanata, a Jakarta-based analyst at Sinarmas Sekuritas.

NOTE: Indonesia’s Communications Minister Rudiantara announced a plan to modify local airwave rules to promote consolidation in the country’s mobile-phone industry. - Bloomberg

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