Telkom Indonesia: FY 2016 net income climbs 25% on strong data/internet growth

8 Mar 2017

PT Telekomunikasi Indonesia (Telkom Indonesia) has reported double-digit growth in revenue, EBITDA and net income in FY 2016, with year-on-year increases reaching 13.5%, 15.7% and 24.9%, respectively. The telco, which is 52.1%-owned by the government, achieved net profit of IDR19.352 trillion (USD1.4 billion) last year, compared to IDR15.489 trillion in FY 2015 as revenues increased to IDR116.333 trillion and EBITDA rose to IDR59.498 trillion from IDR51.415 trillion. Company President Director Alex J Sinaga attributed the strong performance to its data, internet and IT business which expanded by 31.5% compared to 2015 and accounted for 37.0% of total revenues in FY 2016. Sinaga said the results vindicated the firm’s ‘efforts in transforming the company as a digital telco company’. Here, Telkom Indonesia noted that growth of broadband services for both fixed and mobile surged last year. The number of fixed broadband users increased by 8.8% from four million subscribers in 2015 to 4.3 million, including 1.6 million subscribers to its fibre-optic IndiHome product. Telkom says it has been working to enrich the quality of IndiHome with more content, while also unveiling a new service ‘IndiHome Netizen’ – a dual-play broadband internet and home phone service – to target about 1.5 million new users of more than 16 million homes passed in all regions of Indonesia.

In the mobile space, the unit’s wireless arm Telkomsel reported a total user base of 173.92 million at end-2016, up 13.9% y-o-y, while mobile broadband users of ‘Telkomsel Flash’ surged 37.1% on an annualised basis from 43.8 million to 60.0 million. The parent is supporting the mobile drive (and indeed fixed broadband expansion) with a heavy CAPEX programme. In FY 2016 it spent IDR29.2 trillion in capital expenditure, up 10.6% y-o-y, mainly directed to access and backbone infrastructure, with Telkomsel’s CAPEX used for radio access network (RAN) base station development. By 31 December 2016 the cellco reported having added 25,744 base transceiver stations (BTS), the majority of which (92.4%) are 3G/4G-enabled. Furthermore, Telkom reported the construction of more fibre-optic backbone networks – terrestrial and submarine – adding 24,700km to boost its total to 106,600km by the year end, including SEA-ME-WE-5 linking Indonesia with Europe.

Indonesia, Telkom Indonesia, Telkomsel (Telekomunikasi Selular)