EXCL - FY2022 result beats estimates

EXCL reported 4Q22 EBITDA of IDR3.97 tn, or growing 12.2% qoq, thanks to lower infrastructure expenses that resulted in 4Q22 EBITDA margin of 51.8%, which brought FY2022 EBITDA to IDR14.24 tn, accounting for 101%/100.4% of ours/consensus. Meanwhile, 4Q22 revenue increased 3.3% qoq, to IDR7.66 tn, bringing FY2022 revenue of IDR29.14 tn (+8.9% yoy). This beat our/consensus estimate's by 2.4% and 1.1%, respectively, thanks to improving network. Nevertheless, EXCL recorded a jump in finance cost by 27.6% qoq in 4Q22 due to a one-off tower lease renetiation, prompting net profit to decrease 9.0% qoq to IDR235 bn. (Source : Company) Comment: EXCL's overall performance is relatively in line with estimates, yet we notice that the company's 4Q22 data yield decline qoq was aligned with industry due to tighter competition during the quarter, though EXCL managed to retain its blended ARPU at IDR40K thanks to its product mix. In result call, management reitereated strategies to improve their customer-oriented approach with digitization and optimize FMC proposition as key of growth.