IndiHome drives Telkom growth in FY19

29 May 2020

Telkom Indonesia reported that net profit for full-year 2019 totalled IDR18.663 trillion (USD1.26 billion), up 3.5% from IDR18.032 trillion in FY 2018, largely attributed to strong growth from its data business – in particular, broadband brand IndiHome. Consolidated revenue for the twelve-month period grew by 3.7% year-on-year to IDR135.567 trillion with an 18.8% fall in Cellular Voice and SMS revenue being offset by Data, Internet & IT Services, where total turnover increased by 16.6% to IDR65.725 trillion – while the group EBITDA rose 9.5% on an annualised basis and the EBITDA margin rose 2.6pp to 47.8%. The group’s IndiHome residential broadband business booked a dramatic 28.1% increase in revenue to IDR18.325 trillion thanks to a 37.2% increase in customers to more than seven million at 31 December 2019. Mobile arm Telkomsel contributed revenues of IDR91.088 trillion, up 2.1% on an annualised basis, as cellular Digital Business revenue climbed 23.1% y-o-y on the back of the deployment of 23,162 4G base transceiver stations (BTS) in 2019 to boost the total number of BTS on-air to 212,235 – 76.3% of which are 3G/4G BTS. The unit closed out 31 December 2019 with 171.105 million mobile subscribers on its books, up 5% from 162.988 million a year earlier.

Fixed Line Voice revenues, however, declined by 9.6% y-o-y to IDR2.888 trillion in FY19, due to cannibalisation from mobile services that resulted in a decline of fixed line traffic. Previously, Telkom reported that in FY 2018, Fixed Line Voice revenues had decreased by IDR858 billion, or 12.7%, from IDR6.768 trillion in 2017 to IDR5.910 trillion – again primarily driven by the decrease in voice service usage due to the competition of other (e.g. cellular) services. Network and Other Telecommunication Services revenues declined by 13.9% y-o-y in FY19, mainly caused by device sales which dropped by 40.1%, in line with strategy changes in Enterprise business to focus on more profitable products and services.

Indonesia, Telkom Indonesia, Telkomsel (Telekomunikasi Selular)