Telkom Indonesia 2015 profit climbed 7% to USD1.17bn

4 Mar 2016

Dominant fixed and mobile operator PT Telekomunikasi Indonesia (Telkom Indonesia) has published its financial results for 2015, highlighting a 7% year-on-year increase in net profit to IDR15.489 trillion (USD1.17 billion), from IDR14.471 trillion in full year 2014. Revenue in FY 2015 increased by 14.2% on an annualised basis to IDR102.470 trillion, while operating profit stood at IDR32.418 trillion (+11%) and EBITDA reached IDR51.415 trillion, up 12.6% compared to IDR45.673 trillion in 2014; EBITDA margin was 50.2%, down from 50.9% in 2014.

The company said revenue derived from mobile operations amounted to IDR76.100 trillion last year, while turnover from its data, internet and IT services contributed a further IDR32.680 trillion. Full-year CAPEX was IDR26.4 trillion, largely apportioned to efforts to build out its mobile broadband infrastructure (e.g. LTE), property, data centre, and submarine cable investments on SEA-ME-WE5 and SEA-US. The firm noted that mobile arm Telkomsel continued to strengthen its network quality with almost 18,000 new base transceiver stations (BTS) installed during the year. Around 90% of new BTS were 3G/4G-enabled to enhance the ‘mobile broadband experience,’ it said.

Telkom, which is 52.6%-owned by the government of Indonesia, closed out 31 December 2015 with a total of 152.641 million mobile users for Telkomsel (up 8.6% y-o-y), of which 149.131 million were pre-paid (8.3%). In its report, the parent noted that for the fourth consecutive year Telkomsel achieved triple double-digit growth in revenue, EBITDA and net income, which rose by 14.8%, 14.4% and 15.4% y-o-y respectively. Revenues grew to IDR76.055 trillion, with the growth engine being its Digital Business, which increased sales by 43.5% y-o-y, driven by data which surged by 43.9% y-o-y and digital services which grew by 39.2%. During FY 2015, Telkomsel built out 17,869 new base transceiver station (BTS), a 14.9% increase y-o-y, noting too that within this, its 4G LTE deployment is being carried out on an ‘on-demand’ basis, to take into account ‘4G handset penetration and the level of demand in … cities’. The cellco has deployed a total of 1,761 4G BTS to date, while overall, Telkomsel’s networks totalled 103,289 BTS on air by end-December 2015, up 20.9% on the year before, of which 54,895 BTS were 3G/4G enabled (40.7%). As of 31 December 2015, 2.2 million customers had swapped to a USIM to utilise Telkomsel’s 4G services. In addition, Telkom reported 10.277 million fixed line (POTS) accesses, up from 9.698 million at end-2014, 3.983 million fixed broadband connections (17.2%) and 43.786 million Telkomsel Flash users (40.3%). In 2015, Telkom increased its focus on the development of its bundled service ‘IndiHome Triple Play’, aggressively developing its fibre-to-the-home (FTTH) infrastructure, with a ‘focus on monetisation of our fibre homes-passed,’ it said. As a result, by the start of 2016 a total of around ten million homes were passed by FTTH, while the number of IndiHome subscribers reached 1.1 million with ARPU of IDR310,000 per month.

Indonesia, Telkom Indonesia, Telkomsel (Telekomunikasi Selular)