PT Metrodata Electronics Tbk : MTDL Books Double Digit Increase in Net Profit in 2023

MTDL Books Double Digit Increase in Net Profit in 2023 Drived by an Increase in Corporates ICT Spending, Entering Digital Transformation and Industry 4.0

Jakarta, March 28th 2024 - PT Metrodata Electronics Tbk (MTDL) a digital information and communication technology (ICT) issuer, especially in the fields of solutions, digital consulting and digital distribution, which is the largest ICT sector listed company in Indonesia in terms of sales with more than 40 years of experience, managed to record a net profit of IDR 650.8 billion, an increase of 12.1% compared to 2022's net profit of IDR 580.5 billion.

The net profit was obtained thanks to the Company's revenue which reached IDR 22.1 trillion, which is the highest revenue in the Company's history. Revenue in 2023 increased by 5.2% from revenue in 2022 of IDR 20.9 trillion, driven by the digital transformation process that is being intensively carried out by companies in Indonesia.

"This satisfactory profit shows that MTDL is always ready to seize existing business opportunities. Where in 2023, many business opportunities will come from the digital transformation process that is being carried out by many corporations in the country," said President Director of MTDL, Susanto Djaja.

Of all the Company's revenues, the distribution business unit is still the largest contributor, contributing revenue of IDR 16.5 Trillion, up 0.6% YoY. The income from the solutions and consulting business unit was recorded at IDR 6.2 trillion, increasing 21.8%YoY.

The increase of the revenue in the distribution business unit are mainly contributed by the Commercial segment, which grew by 13.8% YoY. This segment contributes 38.9% to the total distribution revenue, in line with the increasingly trend of digital transformation among business players. Meanwhile, the Consumer segment was corrected from the previous year by 7%, relatively smaller than the decline in consumer ICT market demand which reached tens of percent in 2023.

The distribution business unit managed by the Company looks to be getting brighter, in line with the success of the subsidiary PT Synnex Metrodata Indonesia (SMI) in gaining trust as an official IBM distributor. By achieving this trust, the Company is ready to develop generative AI (artificial intelligence) for business by offering comprehensive IBM software and hardware products, including the latest advanced server, storage and software products to meet consumer needs for the commercial market sector in Indonesia.

The increase in revenue from the solutions and consulting business unit was mainly supported by sales to the financial, telecommunications, and oil and gas sectors (Enterprise segment) which grew by 29.7% YoY. Apart from that, the increase in revenue was also driven by the Company's initiative to provide innovative ICT solutions that are relevant to current developments in technological transformation. The emerging technology trends in the ICT Solutions market mainly come from Cloud Hyperscaler, Digital Business Platform, Business Application, Cybersecurity, Software Subscription and SaaS. Moreover, the income received from those trends tends to be recurring. Until 2023, the solutions and consulting business unit recorded a contribution of recurring revenue amounting to 38.7%.

Regarding the prospective solutions and consulting business unit, MTDL has signed an MoU (Memorandum of Understanding) with FPT Information Systems (FPT IS), a leading company in digital transformation in Vietnam. Together with FPT, MTDL aims to explore the possibility of synergizing in developing world-class digital transformation solutions, supported by Cloud, Data and Artificial Intelligence solutions, in order to capture Indonesia's growing digital opportunities. The two companies will jointly focus on promoting Artificial Intelligence-based (AI-based) applications to increase productivity and accelerate progress towards achieving the goals of 'Indonesia Vision 2045'.

Meanwhile, through its subsidiary PT Mitra Integration Informatika (MII), MTDL has also recently entered into a partnership through a strategic initiative with Microsoft, as a form of ongoing commitment to provide the latest range of services and encourage the adoption of AI for customers throughout Indonesia. Through the partnership, MII provides comprehensive Azure OpenAI services, expert consulting and implementation, customized AI solutions, and robust compliance and security.

"Because ICT will continue to be a necessity, we believe that MTDL's performance growth will be sustainable. We see that in 2024, more and more companies will need Metrodata Group's services in carrying out digital transformation towards Industry 4.0. Therefore, we are optimistic that we will be able to achieve the total revenue target of IDR 25 trillion this year," concluded Susanto Djaja.

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About PT Metrodata Electronics Tbk

PT Metrodata Electronics Tbk ("the Company") a public listed company in Indonesian Stock Exchange since 1990 (IDX: MTDL) is a leading provider of solutions and consulting services, as well as the distribution of Information and Communication Technology (ICT) and Digital products and services in Indonesia. partnering with world-class ICT companies.

It currently has its main business which is the Digital Distribution Business (Providing World-Class ICT Hardware and Software) that handles distribution to the dealers and ICT solution companies as well as running an e-commerce business. The distribution network covers more than 330 cities across Indonesia and has more than 6,000 channel partners with more than 100 brands of world-class IT products and services.

Another main business is the Digital Solutions and Consulting Business (Digital Solution Provider to Help Companies Achieving Digital Transformation) provides complete ICT solutions based Metrodata's 8 pillars of Digital Solution, consisting of Cloud Services, Data & AI, Hybrid IT Infrastructure, Cybersecurity, Business Application, Digital Business Platform, Consulting & Advisory Services, and Managed Services to support digital business transformation.