Telkom Indonesia 9M21 revenues and profits climb on IndiHome gains

25 Nov 2021

State-controlled telco Telekomunikasi Indonesia (Telkom) said net profit for January-September 2021 totalled IDR18.872 trillion (USD1.32 billion), up 13.1% from IDR16.679 trillion in the same period a year ago, attributed in part to strong growth from its IndiHome business. Consolidated revenue for the nine-month period grew by 6.1% year-on-year to IDR106.043 trillion as Data, Internet & IT Services division’s contribution to total turnover increased by 8.3% to reach IDR57.016 trillion in the period under review, driven by strong growth from ‘cellular data revenue, enterprise connectivity, and digital services’ and IndiHome contributed IDR19.638 trillion (up 21.9%), in a period in which it added a net 450,000 new subscriptions ‘despite challenging operational activities due to measures and protocols in connection with COVID-19’. Total fixed broadband subscriptions reached 8.46 million as of end of September 2021. However, SMS, Fixed and Cellular Voice revenues slipped 15.6% to IDR15.985 trillion, it said, due to cannibalisation from instant messaging (OTT) application and continuous transition from legacy to data. During the period, Voice and SMS revenue declined by 15.7% y-o-y and 15.2% y-o-y, respectively. Group EBITDA, meanwhile, surged by 8.1% y-o-y to IDR57.927 trillion from IDR53.586 trillion with an EBITDA margin of 54.6% compared to 53.6% in 9M20. The operator stated that expanding EBITDA reflected ‘successful profitability improvement and cost efficiency in our business lines’.

In its filing Telkom noted that its PT Dayamitra Telekomunikasi (Mitratel) subsidiary successfully conducted its initial public offering (IPO) on 22 November 2021 ‘to become one of the biggest listed tower providers in Indonesia’. Mitratel raised around IDR18.8 trillion in funding which will be allocated to support organic and inorganic business expansion.

Indonesia, Telkom Indonesia