Telkom Indonesia reports rising revenue, profits on surging smartphone sales

30 Apr 2014

Indonesian state-owned telecoms operator Telkom Indonesia has reported a 5% year-on-year rise in net profit in the first quarter of this year to IDR3.7 trillion (USD320 million), on revenue that increased by 8.7% to IDR21.3 trillion over the same period. The firm, Indonesia’s largest carrier by subscribers and revenue, attributed the rises to ‘strong revenue streams from data services’, as sales of smartphones continue to accelerate. In a website financials filing Telkom reported that in Q1 2014, revenue from data, internet and IT services experienced ‘double-digit’ growth on the back of demand for advanced handsets and other devices. The operator is yet to release an update on its operational status, but has confirmed that it is on target to reach IDR89.1 trillion in turnover in FY 2014, a 16% improvement y-o-y, and that it will commit IDR22.3 trillion in CAPEX this year to improve its networks and services, with a focus on ‘faster data services’. For example, Telkom is spending upwards of USD600 million on the expansion of its fibre-to-the-home (FTTH) network in Indonesia, with the aim of rolling it out to 30 cities across the country – including Jakarta – with Bandung set to follow next year. The FTTH service boasts a premium-rate 1Gbps tariff. Further, the operator is looking to complete the build of the Sulawesi Maluku Papua Cable System (to connect the eastern islands), work on which is underway.

Indonesia, Telkom Indonesia