Telkom Indonesia books net profit of IDR8.7tn in 1H18, down 28% y-o-y

2 Aug 2018

PT Telekomunikasi Indonesia (Telkom) reported that net profit in the first six months of this year stood at IDR8.698 trillion (USD605.75 million), down 28.1% from IDR12.104 trillion in H1 2017, on revenues which edged up 0.5% on an annualised basis to IDR64.368 trillion, from IDR64.021 trillion. First-half earnings before interest tax depreciation and amortisation (EBITDA), meanwhile, declined by 14.7% to IDR28.343 trillion from IDR33.235 trillion. Whilst noting that revenue growth had been impinged by ‘tight competition’ in the local market, Telkom did experience strong growth from its Data, Internet & IT Services segment, which contributed IDR32.742 trillion of total revenue, up 20.7% when compared to 1H17 and 50.9% of total revenue in the period under review. Telkom Finance Director Harry M Zen noted that the sharp increase in revenues from the segment was ‘in line with the surge in mobile data traffic and the increase in fixed broadband service users’. Elsewhere, mobile arm Telkomsel generated revenue of IDR42.741 trillion and net profit of IDR11.722 trillion – albeit subscriber numbers dipped 0.1% y-o-y to 177.888 million – while Telkom’s Consumer segment grew by 20.8% y-o-y, driven by its burgeoning IndiHome (fibre broadband) business. Indeed, IndiHome take-up exploded in the year to 30 June 2018, more than doubling to 4.14 million subscribers, with ARPU of IDR251,000 per month, and sales derived from such services increasing by 46.8%.

In the first half of 2018, Telkom Group spent IDR14.1 trillion in capital expenditure. In terms of its mobile business, Telkomsel said its CAPEX was mainly utilised for radio access network (BTS) development and IT system enhancement, including installing 14,978 new BTS during 1H18, all of which are 4G capable BTS. By the end of June 2018 the total number of BTS on-air totalled 175,683 (+19.9% y-o-y), 71.4% of which were 3G/4G BTS. Meanwhile in the Group’s fixed line businesses, CAPEX was primarily utilised ‘to develop access and backbone infrastructure, including satellite and submarine cable systems to support fixed as well as mobile broadband businesses’. Additionally, a portion of its first-half CAPEX was used for other projects such as towers.

Indonesia, Telkom Indonesia, Telkomsel (Telekomunikasi Selular)