TELKOM: Digital Business Income Grows Fast Exceed Business Cellular Voice & SMS

By : JG | on 9:30 PM July 29, 2017
Category : Advertorial, Corporate Updates

In the midst of an increasingly competitive industry condition, PT Telkom Indonesia Tbk (Telkom) showed a very satisfactory performance, marked by higher revenue from its Data, Internet & IT Services line and for the first time exceeded revenue from Cellular Voice & SMS lines. In the first half of 2017, Telkom posted revenues from Data, Internet & IT Services of Rp 27.12 trillion, while Cellular Voice & SMS revenues amounted to Rp 26.02 trillion. Business data, Internet & IT Services contribution to total revenue also increased to 42.4 percent.

"Data, Internet & IT Service contributed substantially to the company's revenue, with growth of 19.8 percent to Rp 27.12 trillion. In addition, the contribution of Data, Internet & IT Service business to the overall revenue of the company also increased to 42.4 percent or grew 19.8 percent, "said Telkom Finance Director Harry M Zen in Jakarta, Wednesday (26/07).

In the first semester of this year, Telkom booked a triple-double-digit growth, in which revenue reached Rp 64.02 trillion or grew 13.4 percent compared to last year's Rp 56.45 trillion. Telkom also booked EBITDA of Rp 33.23 trillion or grew 15.4 percent and net profit of Rp 12.10 trillion or grew 21.9 percent.

The increase in revenues from Data, Internet & IT Service is in line with an increase in the number of mobile subscribers and a jump in mobile data traffic that reached 118.7 percent. Mobile subscribers currently reach 178 million or grow 13.1 percent compared to the end of the same period last year.

Broadband subscribers also experienced a significant increase, namely Telkomsel Flash mobile broadband subscribers grew 63.9 percent to 81.72 million users. This was followed by an increase in fixed broadband subscribers by 4.7 percent to 4.52 million users.

Likewise, IndiHome fixed broadband service customers recorded a growth of 34.2 percent. If in the first half of 2016, IndiHome subscribers only reached 1.5 million subscribers, then in the first half of 2017 it became more than 2 million subscribers.

In order to increase the number of IndiHome customers, by the end of 2016 Telkom introduced the "IndiHome Netizen" package which is a Dual Play service. This new package received a good reception from the public, where only seven months since its introduction, IndiHome Netizen recorded as many as 389 thousand subscribers. The Average Revenue Per User (ARPU) IndiHome was recorded at Rp 344 thousand.

Meanwhile, Telkomsel, as a subsidiary, is also able to maintain its performance and record triple-double-digit growth. Telkomsel's revenue grew by 11.9 percent, EBITDA by 14.0 percent and net profit by 15.6 percent on Year-on-Year (YoY). In Semester I-2017, Telkomsel's revenue reached Rp 45.99 trillion, EBITDA of Rp 27.19 trillion and net profit of Rp 15.50 trillion. Telkomsel's digital business revenue contribution showed a significant growth of 26.9 percent to Rp 18.07 trillion.

The increasing growth of digital business is supported by the expansion and strengthening of Telkomsel's network with 3G / 4G services through the addition of 17,538 new BTS. Total Telkomsel BTS at the end of semester I-2017 is 146,571 BTS, of which 65.7 percent is a BTS capable of providing 3G / 4G services.

In the first semester of 2017, the company's expenses increased by 10.0 percent from Rp 36.57 trillion last year to Rp 40.23 trillion. Operating and maintenance expenses were the main contributors to the Company's expenses, which increased by 13.8 percent from last year's period to Rp 18.41 trillion. This increase in operational and maintenance expenses is in line with the accelerated development of network infrastructure to support the performance of mobile business and broadband.

Until the end of Semester I-2017 Telkom Group has spent capital expenditure (Capex) of Rp 16.7 trillion or grew 21.4 percent compared to last year. Capex is primarily used to support the broadband business, both fixed and mobile, such as the construction of fiber optic backbone infrastructure, Telkomsel's Base Transceiver Station (BTS) development, satellite manufacturing, deployment of intercontinental and submarine cable (IGG and SEA-US) telecommunication towers and telecommunication towers.

Harry expects Telkom to maintain an encouraging performance in Semester I-2017. "The achievement in Semester I-2017 was obtained thanks to the strong performance of the company in the previous period, we hope, this growth momentum can be maintained in the next semester," said Harry M Zen.

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