1
XL RECORDED A 19% GROWTH IN 2004 REVENUE
Revenue and Operating Income
Based on it s 2004 audit ed account s, PT Excelcomindo Prat ama (“ XL") report ed a gross revenue
of Rp. 3.1 t rillion in 2004. This represent s a 19% increase over t he previous year of Rp. 2.6
t rillion. The increase is support ed by subscriber growt h f rom 2. 9 million in 2003 t o 3.8 million
in 2004.
Operat ing income increased by 13% from Rp. 583.4 billion in 2003 t o Rp. 658.8 billion in 2004.
Operat ing expenses f or t he same period increased by 17% from Rp. 1.6 t rillion t o Rp. 1. 9
t rillion. Most of t he increase was in selling expenses, especially f or brand revit alizat ion and
new product launch exercises during t he year.
XL recorded a higher int erest expense in 2004 due t o higher debt levels and int erest rat es af t er
t he issuance of t he IDR 1.25 t rillion (repayment due in Oct ober 2008) and USD 350 million Reg
S/ 144a Not es (repayment due in January 2009), issued mainly t o refinance t he company’ s
f oreign syndicat ed secured debt and t o support business growt h. The weakening of Rupiah
against US Dollar from Rp. 8,465/ US$ as at year end 2003 t o Rp. 9,290/ US$ as at year end
2004 has result ed in f orex losses of Rp. 273.9 billion, most of which were unrealized losses
f rom USD 350 million Not es, not impact ing cash f lows. As a result of t he f orex losses, XL
experienced a net loss of Rp. 50.1 billion in 2004 versus a net income of Rp. 400.7 billion in
2003.
As of year end 2004 XL had an out st anding debt of Rp 1.25 billion IDR Bonds due in Oct ober
2008 and USD 350 million Not es due in January 2009. The year end 2004 cash balance
amount ed t o Rp. 426.9 billion compared t o year end 2003 figure of Rp. 608.1 billion. Total Net
Debt as at year end 2004 st ood at Rp. 4.0 t rillion.
Infrastructure and Portfolio Investme nt
“ XL’ s s capex spent in 2004 was Rp. 1.8 t rillion compared t o Rp. 1.1 t rillion in 2003. Base
st at ions in service increased from 1,491 unit s in year end 2003 t o 2, 357 in year end 2004,
represent ing an increase of 58%. In addit ion t o BTS building t o increase capacit y, coverage and
qualit y, XL launched new corporat e brand and logo in order t o serve as a powerf ul
“ mast erbrand endorsement ” f or all XL’ s product s, which w ere launched t o cat er t o diff erent
2 Je mpol prepaid card was launched t o reach t he low t o medium-end market segment who
requires basic voice and SMS services wit hout any value added services. Bebas prepaid and
Xplor post paid serve as a realignment of t he previous proXL prepaid and post paid product s.
The Tsunami disast er in lat e 2004 had no impact on t he company’ s t elecommunicat ions
operat ions.
Te lekom Malaysia Acquisition
In December 2004, Telekom Malaysia Berhad t hrough it s wholly-owned invest ment arm, TM
Int ernat ional (L) Limit ed (“ TMIL” ) reached an agreement t o acquire 27.3% int erest in t he
company, t oget her wit h t he t ransf er of maj orit y management and board cont rol. TMIL init ially
acquired 23.1% int erest and will subsequent ly acquire an addit ional 4.2% int erest upon t he
sat isfact ion of cert ain condit ions. This t ransact ion will complement XL’ s plan for an IPO in
2005, in which TMIL int ended t o acquire addit ional int erest t o achieve maj orit y shareholding.
About XL
XL is t he largest privat ely owned cellular provider in Indonesia. Est ablished in November 1995
and st art ed commercial operat ion in Oct ober 1996, XL business consist s of Consumer Solut ions
as dual band cellular net work provider t hrough je mpol and bebas prepaid and Xplor postpaid
cards and Business Solut ions as corporat e service provider based on leased line and IP (Int ernet
Prot ocol). XL’ s vision is t o become t he leading t elecommunicat ions provider in Indonesia.
For more inf ormat ion, please cont act :
