Maintaining Growth and Margin
EXCL marked the further significant growth by posting the hike of 61% y-y into IDR13 trillion in revenue. A relatively stable net profit of IDR375 billion (-0.1% y-y) was attributable to the tax benefit of IDR190 billion on 2016’s net profit.
2017’s EBITDA margin declined into 35.7% caused by the hike of 27.7% y-y into IDR2.5 trillion in interconnection cost amid EXCL’s penetration to ex Java market dominated by Telkomsel. Besides, the salaries & employee benefit cost also hiked by 12.8% y-y into IDR1.3 trillion, an impact of severance payment in relation to transformation program. The number of employees in 2017 declined by 13% y-y into 1,652 employees.
The more intense competition will result in a significant increment in sales & marketing cost, 1Q18 sales & marketing sales in particular. The implementation of SIM card registration underscores this significant increment. Furthermore, the ex Java expansion also will result in the upbeat infrastructure cost in 2018.
Although the significant increment in 2018’s cost, we project that EBITDA margin will be maintainable at the average of 36% justified by the employee & benefit cost-saving, and reduction in the interconnection cost justified by the positive progress in Super Ngobrol package.
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