Telkom Records Rp 32t in First-Quarter Earnings

Telkom Indonesia and Commonwealth Life are working together to launch of the 'Jiwa Sehat' insurance program. (Photo courtesy of Telkom)

By : JG | on 6:40 PM May 02, 2018
Category : News

Jakarta. State-owned telecommunications company Telkom Indonesia reported Rp 32.3 trillion ($2.3 billion) in revenue for the first quarter of 2018.

This figure represents a 4.3 percent increase compared with the same period last year, despite increasingly stiff competition and a shift from voice calls and text messages to digital options.

Earnings before interest, taxes, depreciation and amortization in the first quarter stood at Rp 16.1 trillion, with net profit at Rp 5.73 trillion.

Telkom's data, internet and information technology service segments contributed most of its revenue, amounting to Rp 15.9 trillion, which increased 23.3 percent from last year.

"Business data, internet and IT services are rising, along with the increased use of smartphones, IndiHome customers and increasing ICT solution services for corporate customers," Telkom finance director Harry Zen said in Jakarta on Monday (30/04).

Telkom had 5.74 million subscribers to its IndiHome fixed broadband service in the first quarter of 2018. This represents a 97 percent increase from the same period last year.

Meanwhile, the number of mobile broadband service subscribers also grew convincingly, at 21.3 percent to 108.73 million.

Telkom's digital business currently accounts for 48 percent of its total revenue, which increased 10 percent from last year.

"The current dynamics in the industry adds to Telkom's belief that the data and services business is the future of the telecommunications industry, not only in mobile broadband but in the enterprise segment," Harry said.

He added that IndiHome and wholesale and international business are expected to be the key drivers of Telkom's future business growth.

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