Tuesday, 19 January 2021 | 10:06 WIB

Telkom Indonesia Obtains Net Profit of IDR16.8 Trillion in Third Quarter 2020

Telkom Landmark Tower (special)

JAKARTA, NETRALNEWS.COM - State-owned telecommunications company PT Telkom Indonesia (Persero) Tbk (IDX:TLKM), also known as Telkom, has closed the third quarter of 2020 with a healthy performance and maintained level of profitability. Amid the COVID-19 pandemic, the company posted consolidated revenues of IDR 99.94 trillion in the first nine months of 2020.

The company's EBITDA (Earnings Before Interest Tax Depreciation Amortization) increased by 7.1% to IDR53.59 trillion, with EBITDA margin which improved significantly by 4.9 points to 53.6% from the same period last year.

Telkom's net profit touched IDR16.68 trillion, a growth of 1.3%, with a net profit margin that was also better than the same period last year, improving to 16.7% from 16.0% previously.

President Director of Telkom Ririek Adriansyah, explained that this achievement cannot be separated from the contribution of IndiHome, which is one of the main engines of the company's revenue growth, in addition to the mobile data business which continues to grow well.

"This is in line with the company's business focus on three digital business domains, namely digital connectivity, digital platforms and digital services," Ririek said in a press release, on Thursday (11/05/2020)

For information, Telkom's subsidiary in the Mobile business segment Telkomsel obtained digital business growth of 10.6% to IDR47.66 trillion, with an increasing contribution to 73.2% of its own total revenue.

This achievement was driven by more than 170 million subscribers, with mobile data subscribers totaling 117.3 million (growing by 4.6% YoY).

"This encourages data service consumption to grow 42.5% from the same period last year, and is a catalyst for data ARPU growth. Likewise, data traffic also went up by 39.6% to 6,681,637 TB," he said.

Meanwhile, the triple play fixed broadband service IndiHome obtained revenues of IDR16.1 trillion, or growing 17.1% from the same period last year.

IndiHome subscribers grew by 752,000 by the end of the third quarter of 2020, or reaching a total of more than 7.76 million subscribers. IndiHome is increasingly optimistic about achieving the target of eight million subscribers by the end of this year.

Furthermore, the Wholesale & International Business segment performed well, with revenues growing by 24.9% YoY to IDR10.2 trillion. This achievement was mainly driven by an increase in the telecommunication tower business and Voice Wholesale.

In October 2020, Telkom restructured its telecommunication tower business portfolio by transferring ownership of 6,050 Telkomsel towers to Mitratel.

This aims to create value generator for the telecommunications tower business, which has the potential to welcome the presence of 5G technology and make Mitratel the leading tower provider in Indonesia.

Meanwhile, Telkom Finance Director Heri Supriadi said that in the midst of the COVID-19 pandemic, Telkom is committed to continuing to invest to accelerate digital business and provide the best products and services for the public.

As of the third quarter of 2020, Telkom has spent capital expenditure or (capex) of IDR 17.9 trillion, mostly for strengthening infrastructure to improve service quality.

"With maintained investment, we are optimistic and hope to close 2020 with an increasingly healthy performance and good profitability," he said.