EXCL- Records 19% increase in data traffic during year-end

EXCL- Records 19% increase in data traffic during year-end XL Axiata (EXCL) recorded a jump in data traffic during Christmas and New Year holiday by 19% yoy or 15% compared to regular days. A jump in data traffic was driven by video streaming, while as for voice and SMS also increased slightly by 1% and 8%, respectively. Central Java led data traffic increase by 21%, followed by North Sumatra by 16%. Meanwhile, West Java came in at 14% growth in data traffic. (Source: Kontan) Comment: Compared to other two biggest MNOs, EXCL's data traffic growth during year-end holidays was the highest. Telkomsel recorded c. 11% increase in data traffic while ISAT's was below 10%. We perceive EXCL's higher data traffic was attributable to its high concentration in data users that topped over 90% of overall subs. While higher data traffic during holidays considered nothing out of ordinary, it should result in its 4Q23 top-line especially in times or price recovery. We maintain BUY on EXCL with target price of IDR2,950 per share.