Telkom’s Q1 net profit up 6.4% at IDR3.814tn

1 May 2015

Indonesia’s largest telecoms operator by subscribers and revenue, PT Telkom Indonesia (Telkom) reported net profit of IDR3.814 trillion (USD294.8 million) for the three months ended 31 March 2015, up 6.4% compared to IDR3.585 trillion in the corresponding period a year ago, as revenue climbed 11.1% to IDR23.616 trillion in the same period. Telkom, which is 52.6%-owned by the government of Indonesia, said part of the growth was attributable to mobile arm Telkomsel which saw turnover rising 12.1% year-on-year to over IDR17 trillion. Group EBITDA reached IDR12.362 trillion – up 13.9% on an annualised basis – and operating profit increased by 7.7% to IDR7.448 trillion, even though operating expenses rose 12.8% y-o-y to IDR16.168 trillion.

On a segmental basis, Telkom said that cellular voice and SMS revenues increased by 5.6% y-o-y and 5.2% respectively to a total of IDR12.9 trillion, although this was partly offset by a 6.4% decline in fixed line voice sales to IDR2.2 trillion. However, the biggest single largest gain came from data, internet and IT services (excluding SMS), which soared 27.6% to IDR7.1 trillion mainly fuelled by its burgeoning mobile data business – which is seeing strong take-up of smartphones (3G capable devices) on the back of the launch of ‘attractive’ data plans, which have resulted in high growth in data usage. During the first quarter of 2015, Telkom booked capital expenditure of IDR4.3 trillion to strengthen its networks and services, of which about IDR2.8 trillion was allocated to Telkomsel and IDR1.5 trillion for other subsidiaries. For example, the company confirmed that its mobile division deployed 5,132 new base stations, around 90% of which are enabled with 3G/4G in an effort to maintain leading network coverage and grow its 4G LTE footprint.

On the operational front, Telkom reported a total of 3.477 million fixed broadband (IndiHome) subscribers at end-March 2015, up 11.4% compared to 3.120 million a year earlier, while fixed line users (POTS) stood at 9.787 million, up 3.7% y-o-y. Meanwhile, Telkomsel reported a total of 141.462 million cellular users, compared to 132.651 million at 1Q14, of which 138.528 million are pre-paid. Telkom also reported 30.827 million mobile broadband (Flash) users, up from 17.315 million, and 5.126 million BlackBerry broadband users (down 32.8%).

Indonesia, Telkom Indonesia, Telkomsel (Telekomunikasi Selular)