Managing Director Alex J. Sinaga TelkomGroup

Telkom Records Triple Double Digit Growth in 2016 for revenue, EBITDA and Net Income in Business Data

MARCH 08, 2017

PT Telkom Indonesia (Telkom) propped a triple-double-digit percentage growth in revenue growth, EBITDA and net income experienced with double-digit growth throughout 2016 compared to 2015. Telkom has recorded revenue of Rp 116.33 trillion, up 13.5%, EBITDA Rp 59.50 trillion, up 15.7% and net profit amounted to 19.35 trillion or grew by 24.9% compared to 2015. Achieving triple double-digit growth was recorded back in Telkom after previously achieved in 2007.

Telkom's President Director Alex J. Sinaga said, "good financial performance is supported by the business data, internet and IT which are rapidly increasing by 31.5% compared to 2015 and accounted for 37.0% of total revenues in 2016." This increase shows the result of Telkom's efforts in transforming the company into a digital telco company.

Telkom's revenue contribution throughout 2016 was supported by voice and SMS mobile business amounted to Rp 54.48 trillion, followed by business data, internet and IT service amounting to Rp 42.99 trillion, fixed line Rp 7.54 trillion to Rp 4.15 trillion as well as the interconnection network and other telco services amounting to Rp 7.17 trillion.

The transformation efforts to become a digital telco company can be seen from the growth of broadband services for both fixed and mobile. The number of fixed broadband users increased by 8.8% from 4.0 million subscribers in 2015 to 4.3 million subscribers in 2016, including 1.6 million IndiHome subscribers.

As the flagship product of TelkomGroup fixed-line business, IndiHome contributes significantly since its was launch two years ago. The number of customers reached 1.6 million is a satisfactory outcome, even for global standards. Telkom also has been working to enrich the quality of IndiHome with more content, including streaming video platform and many attractive features such as application Moving 'where users are now spoiled with IndiHome easy access through their smartphone.

Meanwhile, for the mobile business, mobile subscribers Telkomsel recorded until the end of 2016 reached 173.92 million subscribers with a growth of 13.9% compared to 2015. While the number of subscribers to mobile broadband, customers of Telkomsel Flash grew 37.1% from the 43.8 million subscribers in 2015 to 60.0 million subscribers in 2016.

The high growth was obtained thanks to the success of Telkomsel implement digital business transformation and healthy growth in the legacy business. As of the end of 2016, Telkomsel has added 25 744 base transceiver stations (BTS) with a majority of 92.4% of which are BTS 3G / 4G, shows that the company's focus to also grow the digital business on mobile.

Telkom recorded throughout 2016 spend Rp 29.2 trillion to build infrastructure that supports cellular, broadband and other infrastructure.

The company has completed construction of fiber optic backbone network, both terrestrial and submarine cables in 2016 along 24,700 kilometers, bringing the total fiber optic backbone network owned by Telkom until the end of 2016 be 106 600 kilometers including submarine cable SEA-ME-WE-5 linking Indonesia with Europe.

In addition to build a fiber-optic backbone network, Telkom has completed the construction of data centers with a total of 95,000 m2 by the end of 2016, including data center TELIN-3 with 20,000 m2 built in Singapore.

Telkom supports the local and central government in providing smart city system through the provision of broadband infrastructure and cloud-based solutions in 219 cities, as a commitment to build a digital society Indonesia and supports government efforts to make Indonesia as the power of the digital economy in Southeast Asia.

Telkom also participates and support the industrial economy Micro, Small and Medium Enterprises (SMEs) by providing a digital platform through e-commerce Digitalization of industrial SMEs through platform makes an opportunity for businesses in the entire territory of Indonesia to be able to compete on a global level.

In order to take advantage of these opportunities, together with all SOEs, Telkom is forming SME business incubation through SOE Creative Home (RKB). Here, the perpetrators of SMEs assisted SOEs are given training in improving the quality of products according to global standards, marketing through online platforms and training slots. RKB is expected from the project created the perpetrators of SMEs as the driver of the digital economy of Indonesia.

"The satisfaction and trust of customers, investors and other stakeholders to Telkom and all entities encourage us to work hard to provide the achievement of optimal business performance. To that, we say thank you and will always prove a commitment to continuously improve the company's performance which is also positively impacted by the advancement of the nation, "added Alex.