Telkom Indonesia 1H revenue climbs 7.7%; mobile business upturn ‘encouraging’

2 Aug 2019

State-backed Telkom Indonesia has released its financial results for the six months ended 30 June 2019, highlighting that revenue improved 7.7% year-on-year to IDR69.345 trillion (USD4.9 billion), operating profit surged 22.7% to IDR22.210 trillion, EBITDA rose 16.9% to IDR33.124 trillion and net income climbed to IDR11.078 trillion from IDR8.698 trillion on the back of an improved performance from its mobile business. Telkomsel’s first-half revenue topped IDR45.106 trillion (up 5.5% y-o-y) as a rise in mobile data-based services – which jumped 32.2% to IDR28.072 trillion – helped offset a 20.8% annualised fall in the unit’s voice and SMS (Legacy) business, to IDR17.034 trillion. The mobile arm’s EBITDA rose 9.0% to IDR24.231 trillion and net income improved 8.4% to IDR12.705 trillion, with a net income margin of 28.2% (up 0.7pp). Telkomsel reported 167.8 million mobile customers at end-June 2019, with a monthly blended ARPU of IDR46,000. It reported that it had 204,198 BTS on-air at that date (up 3.4%), 71,789 of which were 4G BTS (up 16.2%).

In the fixed internet arena, meanwhile, Telkom reported 7.958 million broadband connections at the end of the period under review, up 26.1% y-o-y, including 6.001 million IndiHome (dual-play and triple-play) users. Telkom noted that IndiHome recorded IDR8.8 trillion of revenue in 1H19, a significant 61.5% increase when compared to 1H18, although IndiHome ARPU in 2Q19 was IDR260,000, slightly lower than the IDR265,000 figure reported in the previous quarter, due to ‘a larger portion of dual-play customers compared to triple-play customers,’ it said.

Indonesia, Telkom Indonesia, Telkomsel (Telekomunikasi Selular)