Telkom posted Rp 97 T Revenue and Net Profit of Rp 17.92 Trillion

Telkom executive general manager digital service division Ery Punta said on Monday (01/10) that Telkom has initiated and prioritized talent development programs and digital ecosystem development programs to fulfill a need for talent and digital innovations in Indonesia. (Photo courtesy of Telkom)

By : JG | on 5:43 PM October 27, 2017
Category : Advertorial, Corporate Updates

PT Telkom Indonesia (Telkom) today announced the achievements of Q3 - 2017 consistently showing good performance. Until the first nine months of 2017, Telkom posted a net profit of Rp 17. 92 trillion. The revenue grew 21.7% from the same period the previous year amounted to Rp 14.73 trillion. Total revenues by the end of September 2017 reached Rp 97 trillion or grew 12.5% ​​from the third quarter to 2016 of Rp 86.19 trillion and EBITDA grew 12.8% to Rp 50 trillion from the previous Rp 44.38 trillion. Most of the growth came from Data, Internet & IT Service segment which grew by 30.5%. Data Segment, Internet & IT Service is still the dominant contributor to performance growth by contributing 43.8% to total revenue of the Company.

Telkom's Finance Director Harry M. Zen said that in Q3 / 2017, Telkom consistently showed strong performance, marked by re-triple-double digit growth in revenue, EBITDA and net income. In addition, digital business increasingly strengthens its contribution. "Most of Telkom's digital business has performed well this quarter. Going forward, Telkom hopes to benefit from Indonesia's sustainable economic growth as it is supported by the increasing use of data and internet, both by individuals and corporations, "said Harry M. Zen. Telkom will continue to increase the growth of Data, Internet & IT Service segment in line with the Government's determination to make Indonesia the largest player of the digital economy in Southeast Asia.

Data Segment, Internet & IT Service which became the largest revenue contributor recorded revenue of Rp 42.45 trillion. Furthermore, Celullar Voice and SMS revenues amounted to Rp 38.68 trillion and Fixed Line Voice segment of Rp 5.42 trillion. Interconnection revenue as well as Network and Other Telecommunication Services recorded revenue of Rp 3.72 and Rp 6.72 trillion respectively.

Fixed Broadband recorded significant customer growth of 4.75 million subscribers. This amount includes 2.34 million IndiHome customers with ARPU IndiHome this quarter was recorded at Rp 308 thousand. In line with the onslaught of marketing and infrastructure enhancement program, IndiHome subscribers jumped 53.5% from 1.52 million in the previous year. The IndiHome Netizen (Dual Play) package which was introduced late last year received a positive response by listing 581 thousand new customers or close to 25% of IndiHome's current total customers. As for Telkomsel Flash mobile internet service subscribers increased to 80.33 million users from the previous 50.48 million, up 59.1%.

The Company's expenses until the end of September 2017 increased by 9.8% to Rp 61.41 trillion from Rp 55.91 trillion in the previous year. Operating and maintenance expenses were the main contributors to the Company's expenses, which increased by 14.8% to Rp 27.11 trillion. This increase in operational and maintenance expenses is in line with the acceleration of network infrastructure development to support mobile and fixed broadband performance.

As of September 2017, Capital Expenditure (Capex) of TelkomGroup reached Rp 20.3 trillion. Capital expenditures are used to build Base Transceiver Station (BTS) to support Mobile Business and complete the construction of backbone access and infrastructure, including satellite launches and the construction of an international access Cable Communication System (SKKL) to support Fixed Business. On August 8, 2017, SKKL from Indonesia (Manado) to the United States (Los Angeles) has been completed.

The completion of SKKL fiber optic development of international access connecting Indonesia to Western Europe through Arabian Peninsula and submarine cable from Indonesia to the United States through the Pacific Ocean makes Indonesia as a country with strategic position and potential to become the world's digital and telecommunication hub.

Meanwhile, during the first nine months of 2017, Telkomsel, as a subsidiary, managed to gain revenue, EBITDA and net income respectively by Rp 69.53 trillion, Rp 40.85 trillion and Rp 23.30 trillion or an increase of 9.2 %, 10.0% and 10.8% over the same period in 2016.

In the third quarter - 2017, Telkomsel also spent expenses beyond depreciation of Rp 38.8 trillion, up 8.3% over the same period in 2016 amounting to Rp 35.8 trillion.

Until the end of September 2017, Telkomsel has built 23,158 new BTSs, bringing the total BTS operating in total to 152,191 BTS of which 66.9% are 3G / 4G BTS. The addition of BTS increased 22.6% from 124,097 BTS in September 2016. Until now, Telkomsel's subscribers reached 190.36 million, of which 40.5 million are 4G LTE customers. Telkomsel currently serves 4G LTE services in 489 cities across Indonesia.

In addition, on October 21, 2017, Telkomsel was officially declared a 2.3 GHz frequency spectrum auction and committed to maximize the use of the additional spectrum to support the Indonesian Broadband Plan 2014-2019. The investment made by Telkomsel in obtaining additional spectrum shows Telkomsel's commitment to provide the best broadband service for all customers.

"This additional spectrum will improve the efficiency of our capital and operational expenditures, as well as open greater business opportunities to strengthen our position in the industry," said Harry M. Zen.

Harry expects Telkom to improve its performance in the next quarter. Achievement of the third quarter is according to him is a result of the strong performance of the Company in the previous period. "Telkom hope, growth momentum can be utilized with the maximum," added Harry M. Zen.


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