Perusahaan Perseroan Persero PT Telekomunikasi Indonesia Tbk : Telkom Financial Report Semester I/2021

Telkom Financial Report Semester I/2021 Profitability Even More Robust and Positive Performance Recorded, Telkom Digital Transformation Begins to Bear Fruit

Posted on : 2021-09-01 | Tags :

Jakarta, 31 August 2021 - PT Telkom Indonesia (Persero) Tbk (Telkom) posted a double-digit net profit growth in its first half of 2021 performance. As of June 2021, the company's consolidated net profit reached Rp12.5 trillion or grew 13.3% YoY. Telkom was able to record a double-digit profit growth because it succeeded in optimizing the company's various digital products and services performance. One of Telkom's digital products that recorded positive growth is IndiHome, a provider of fixed broadband services for the community.

Telkom recorded Rp69.5 trillion in consolidated revenue or grew 3.9% YoY. In the same period, earnings before interest, taxes, depreciation and amortization (EBITDA) reached Rp37.8 trillion or grew 4.7% compared to the same period in the previous year. The company's EBITDA margin increased to 54.4% in the second quarter of 2021 from 54.0% in the second quarter of 2020. Telkom Indonesia was able to maintain consistency of its performance due to the company's commitment to transforming its business to become the leading digital telco in Indonesia and in the Southeast Asian region.

During the first half of 2021, IndiHome's revenue grew 24.2% YoY to Rp12.9 trillion, with its EBITDA margin also grew impressively, from 38.6% as in June 2020 to 47.6% as in June 2021. This was due to its customers robust growth and its improving ARPU, as a result of increasing demands for its numeorus add-ons services as they enrich customer experience. Partnerships with global content providers have proven to be the right strategy for growth and bear fruit for IndiHome services. IndiHome's revenue contribution to TelkomGroup's consolidated revenue rose to 18.5% as of June 2021, up from 15.5% in the same period last year.

IndiHome's positive performance was made possible due to various marketing efforts roll-outs which included encouraging customers to upgrade services and speed, as well as to subscribe various add-ons packages. These efforts impacted on improved ARPU to Rp270 thousand from Rp266 thousand in the first quarter of 2021. IndiHome recorded 285 thousand new subscriberso since the beginning of the year, bringing the total number of IndiHome subscribers as per the second quarter of 2021 to 8.3 million people, up 11.4% YoY. IndiHome also offers more entertainment programs, movies, and oriental serials for its subscribers to enjoy with the Dynasty Lite Minipack package. In addition, IndiHome has also just launched IndiKids, a new channel for children.

In the Mobile segment, Telkomsel's digital business revenue reached Rp33.36 trillion or grew 4.7% YoY. The digital service revenue contribution to Telkomsel's total revenue rose from 72.4% in the second quarter of 2020 to 77.3% in the second quarter of 2021, thanks to Telkomsel's large customer base of 169.2 million people. Its mobile data users was recorded at 117.7 million subscribers or grew 12% YoY, while its mobile segment data traffic agrew 54.5% YoY to 6,573,499 Terabytes. Telkom's services can run optimally thanks to 237,300 Base Transceiver Stations (BTS) in operation, of which 187,048 are 3G/4G. In total, Telkomsel's BTS towers grew by 4% YoY as of June 2021.

'Telkom is committed to consistently carry out its digital transformation by providing various products and services that meet the needs of the community in the new normal era. We hope that Telkom's unrivalled connectivity, platforms and digital services could assist people in their activities, so that it would contribute to improving Indonesia's economic growth and the welfare of its people,' Telkom President Director, Ririek Adriansyah said in Jakarta, Tuesday (31/8).

Telkom also recorded improved performance in the Enterprise segment, with revenues reaching Rp8.7 trillion or grew 12.2% YoY. This segment yielded growth from its IT services and connectivity solutions. This shows how Telkom's strategy for growth by encouraging the digitization of corporate customers through reliable connectivity as the company's core competencies and various services did work. This is also in line with the Ministry of SOEs' direction for Telkom to serve as a digital hub for SOEs.

Moreover, the company's revenue from the Wholesale & International Business segment also rose 1.2% YoY to Rp6.9 trillion. This increase was due to business growth in telecommunication towers, data centers, and A2P services. The data center has become a digital platform with demand for such services growing significantly in line with digital businesspeople increased activity. Apart from the telecommunications tower business, Mitratel as a subsidiary of Telkom, has a tenancy ratio of 1.57 times from the previous 1.54 times in June 2020. It also has more than 23 thousand towers or grew 45% YoY. Mitratel has taken various steps as the largest tower service provider in Indonesia, supporting TelkomGroup's and other tenants' various needs, so Mitratel is prepared to optimize its next value creation through even more significant corporate actions.

In the digital business, Telkom's business transformation has shown good results. In an effort to develop a digital business, TelkomGroup implements three main strategies, namely build, or building internal competencies; borrow, through strategic partnerships, and buy, through acquisitions and investments that prioritize TelkomGroup's synergy value.

Telkom is committed to cooperating or collaborating with technology giants at home and abroad. In August 2021, Telkom officially explored cooperation with Microsoft Indonesia. Telkom also disbursed investments for large-scale digital companies and start-ups, such as Telkomsel, which boosted its investment value in technology company GoJek in May 2021.

Through the MDI venture company, Telkom also consistently added value and its investment amounts in national or foreign potential startups. Currently, through MDI, Telkom has invested in 50 startups from 12 countries. The company's investment strategy in startups did not focused only on increasing its capital gain, but also on the collaboration opportunities that these startups may have with various business lines in the TelkomGroup in order to develop synergies that increase the company's business and profitability.

'Telkom will continue to maintain and improve the quality of services and digital products for all levels of society to use. This is in line with people and companies increasing digital adoption as they adjust to the ongoing pandemic, thus encouraging digitalization in all fields. Our transformation process into a digital telco will also continue to create a digital environment, digital society, and digital economy through broadband infrastructure, platforms, and digital services that are able to meet the various needs of governments, communities, and businesses. We have to meet this digital need in order to realize Indonesia's digital sovereignty and realize the vision of an Advanced Indonesia 2045,' Ririek said.

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