EXCL – Aims to enhance home internet experience with First Media integration

EXCL – Aims to enhance home internet experience with First Media integration Following the merger of Link Net with XL Axiata Tbk (EXCL), First Media's home internet services officially became part of XL Axiata on September 27, 2024. This move aims to provide customers with continued or improved services, including easier access to a wider range of products, such as mobile services alongside internet and cable TV. The business transfer, approved by Link Net shareholders at the Extraordinary General Meeting of Shareholders (EGMS) on September 23, 2024, covers all internet service provider (ISP), IPTV, and Pay TV segments. Abhijit Navalekar, Director & Chief Commerce Officer at EXCL, stated in Jakarta on Thursday that, based on the B2C business transfer agreement signed on May 22, 2024, this transfer includes all business segments related to ISPs, IPTV, and Pay TV. As a result, First Media has officially joined the XL Axiata family. XL Axiata assures existing First Media customers that there will be no immediate changes to their products and services. This includes subscription contracts, promotional packages, content services, and First Rewards memberships. First Media's payment outlets and billing methods will also remain unchanged, and their service products will still be available for new subscribers. The integration of First Media with XL Axiata will be gradual, including customer service channels. (Source : Investor Daily) Comment : We strongly support this synergy, as it will enable First Media’s customers to access a full suite of services, including mobile, fixed broadband, Fixed Mobile Convergence, and digital offerings. This integrated approach is aimed at delivering a seamless and exceptional customer experience. EXCL’s rapid fiber optic expansion, alongside its enhanced XL Satu convergence service, has been key to driving FBB growth. Additionally, the improved digital sales channels and expanded fiber optic infrastructure contributed to the FBB segment’s growth and operating profit in 1H24. Maintain our BUY call with a TP of IDR2,600, based on 2.6x 2024F EV/EBITDA (-1SD of 7yrs EV/EBITDA mean).