Telkom Indonesia Q1 profits climb 46% to IDR4.59tn

27 Apr 2017

Indonesian state-controlled operator PT Telekomunikasi Indonesia (Telkom) has released its financial results for the quarter ending 31 March 2017, highlighting continued ‘strong momentum’ and double-digit year-on-year growth in revenue, EBITDA and net income, of 12.6%, 14.7% and 45.8% respectively. The company booked revenue of IDR31.022 trillion (USD2.330 billion) in the period under review, compared to IDR27.542 trillion in 1Q16 as data, internet and IT services acted as a key driver of growth. Cellular voice and SMS turnover was up slightly (0.9% y-o-y) to IDR12.995 trillion, but data/internet-based revenue increased 25.4% from IDR10.301 trillion to IDR12.917 trillion. Interconnection sales were also up 17.4% y-o-y at IDR1.270 trillion, but fixed line voice revenue declined by 4.1% to IDR1.866 trillion, attributed to cannibalisation from mobile services resulting in declining fixed line traffic.

EBITDA in the first quarter of 2017 amounted to IDR16.809 trillion, up from IDR14.655 trillion in the same period of 2016, and net income soared to IDR6.688 trillion yielding a net income margin of 21.6%, up from 16.7% in 1Q16. Meanwhile, Telkom spent more than IDR6 trillion in CAPEX in the January-March period, up 6.1% y-o-y, with its mobile arm Telkomsel using its allocation for radio access network (RAN) development, and Telkom committing significant sums to develop access and backbone infrastructure, including satellites and submarine cable systems (e.g. IGG and SEA-US) to support fixed as well as mobile broadband businesses, while a portion of CAPEX was utilised for other projects including tower and property, it said.

In terms of its operational metrics, mobile subsidiary Telkomsel reported a strong performance in 1Q17 adding a net 1.575 million new users between 1Q16 and 1Q17 for a total of 169.368 million; mobile revenue climbed 10.4% to IDR22.302 trillion and net income was up 7.4% at IDR7.702 trillion. Monthly blended ARPU was unchanged at IDR43,000. The unit said that its focus on ‘Digital Business’ was reflected in its network development where it continued to accelerate expansion with an ‘aggressive’ 3G/4G base transceiver station (BTS) deployment. The operator rolled out 11,130 4G BTS by the end of March 2017, increasing the total BTS on air to 136,093, up 23.1% y-o-y, of which 86,320 were 3G/4G BTS (+40.6%). Turning to fixed operations, Telkom reported that its consumer-focused triple-play service ‘IndiHome’ had 1.778 million subscriptions – up from 1.350 million – as total fixed broadband connections climbed 4.8% to 4.399 million. The company noted too that its ‘IndiHome Netizen’ product, a dual-play service that launched in December 2016, revealed ‘strong traction that contributed around 12% of total subscribers in only four months after it was launched.’ ARPU derived from IndiHome in 1Q17 was IDR357,000, an improvement from IDR341,00 in the last quarter of 2016. Fixed line (POTS) lines in service edged up 1.6% to 10.653 million. Finally, Telkom also delivers fixed line services to enterprise and wholesale business segments. The Enterprise division served 1,453 corporate customers, 300,416 SME customers and 944 government institutions, with 2,759Gbps total bandwidth in service, as at 31 March 2017.

Indonesia, Telkom Indonesia, Telkomsel (Telekomunikasi Selular)