Telkom, a state-owned telecommunications company, reported excellent performance in its third quarter, showing growth at 8.8 percent compared to the second quarter of 2018 in a press release on Oct. 29. (Photo courtesy of Telkom)

Digital Business Contributes Rp 64.37 Trillion to Telkom's Revenue

AUGUST 02, 2018

Jakarta. State telecommunications company Telkom Indonesia reported Rp 64.37 trillion ($4.4 billion) in earnings for the first half of 2018.

Earnings before interest, taxes, depreciation and amortization in the first quarter stood at Rp 28.34 trillion with net income of Rp 8.7 trillion.

Telkom's revenues from data, internet and IT services contributed Rp 32.74 trillion, 50.9 percent of the company's total revenue.

"Data, internet and IT service contributed the most to the company's total revenue, reaching 50.9 percent, and growing quite high by 20.7 percent. The increase in revenue from data, internet and IT service is in line with the surge in mobile data traffic and the increase in fixed broadband service users," said Telkom's finance director Harry Zen in Jakarta on Tuesday (31/07).

Telkomsel as a subsidiary in the mobile segment booked revenues of Rp 42.74 trillion, with earnings before interest, taxes depreciation amortization standing at Rp 22.24 trillion, and earning a net profit of Rp 11.72 trillion.

Telkomsel's digital business contributed significantly, amounting to Rp 21.23 trillion, showing a 17.5 percent growth compared with last year.

The increasing growth of digital business is supported by the continued expansion and strengthening of the network through the addition of 14,978 new base stations with 4G connections.

Telkomsel had 175,683 base transceiver stations by the end of the the first semester of 2018.

Telkomsel has also helped register more than 80 percent of its customers. At the end of June, Telkomsel was recorded to have 177.9 million subscribers.

Meanwhile the enterprise segment of Telkom posted revenues Rp 12.3 trillion, showing a 19.5 percent increase from last year. The company remains focused on providing integrated and high quality information and communications technology solutions for corporate customers, government agencies as well as SMEs.

The company also recently completed construction of its Merah Putih Satellite which will have coverage over Indonesia, Southeast Asia and South Asia, on its launch in Aug. 7 from the Cape Canaveral Air Force Station, Florida, United States.

By the end of the first half of the year, Telkom Group has spent capital expenditure of Rp 14.1 trillion to support its broadband business, both fixed and mobile, such as the development of backbone infrastructure and fiber optic access, Telkomsel's base transceiver station development, satellite and telecommunications tower development.

"Telkom continues to strengthen and expand its infrastructure network to improve the quality of Telkom Group services and encourage digital innovations to ensure the company can grow sustainably in the long term," said Harry Zen.