Indonesian operator XL Axiata’s profitability surged in the final quarter of 2024 as an efficiency drive across all divisions resulted in a sharp decline in infrastructure and marketing expenses.

Net profit in Q4 jumped 45 per cent year-on-year to IDR1.85 trillion ($113.3 million), while revenue rose 6 per cent to IDR17.9 trillion.

President director CEO Dian Siswarini explained in its earnings statement a move to optimise sales and marketing expenses cut costs by 22.3 per cent year-on-year in Q4, while infrastructure expenses were reduced 6.9 per cent as the company shifted to a more efficient network strategy.

Siswarini said it was able to keep operating expenses growth below revenue growth. Capex for 2024 edged up 3 per cent to IDR7.4 trillion.

She added improvements in digital facilities and the use of appropriate technologies across all business lines not only improved service quality but increased data traffic, which was up 9 per cent.

The operator deployed 5,740 base stations in 2024, taking its total to 165,864 sites, with 63 per cent connected by fibre.

ARPU increased 4.7 per cent to INR43,000, while its mobile user base rose 2 per cent to 58.8 million.

The company noted its merger with Smartfren is expected to result in cost savings of $300 million to $400 million after strategic network integration and resource optimisation are completed. It expects the deal to close in the first half of the year.