Jakarta, 20 April 2022 - PT Telkom Indonesia (Persero) Tbk (Telkom) concluded the Company's performance for the 2021 financial year with satisfactory performance in revenue, EBITDA (Earth before Interest, Tax, Depreciation, and Amortization), and net income. Telkom recorded a net profit of 24.8 trillion rupiah or grew 19.0% from the same period last year. This was obtained from the company's consolidated revenue of 143.2 trillion rupiah, a positive growth of 4.9% compared to 2020. The Company's EBITDA in 2021 was recorded at 75.7 trillion rupiah or a positive growth of 5.1% YoY. EBITDA margin and net profit also increased to 52.9% and 17.3%, respectively.

Despite pressures and challenges faced by the telecommunications sector in recent years, Telkom continues to adapt and innovate in corporate strategy, business model, and products and services. Telkom is consistently focused on developing three digital business domains, namely digital connectivity, platforms, and services. In addition, it continuously develops its digital capabilities through three strategies, namely build (build own capacity), borrow (establish strategic partnerships with tech giants/global partners), and buy (through selective investment). Some of Telkom's investment initiatives in the digital business have yielded good performance, as reflected in the company’s positive valuation in synergy value and capital gains,  which also contributed to the Company's increased revenue.

To establish the company's competitive advantages, Telkom has launched five main strategies known as the Five Bold Moves strategy. This also strengthens its moves to become a world-class digital telco with the long-term goal to be able to provide optimal value creation for its stakeholders and the community.

Telkom has implemented the Five Bold Moves strategy since 2021 and it is now starting to yield results. On 22 November 2021, one of the main strategies successfully came to form, namely unlocking the telecommunications tower business through Mitratel's  corporate action of initial public offering on the Indonesia Stock Exchange. Mitratel has managed to raise funds of up to 18.8 trillion rupiah from this corporate action, of which 90% will be used for capital expenditures to develop Mitratel's organic and inorganic business, in line with the company's strategy. Telkom is still aggressively accelerating the other four strategies, namely accelerating the digital business in a structured manner by establishing Digital Company (DigiCo), unlocking the data center business, strengthening the B2B IT services business, and initiating the integration of the broadband business (fixed mobile convergence, FMC).

Telkom President Director Ririek Adriansyah said, "Thank God, Telkom's step to become a digital telco is beginning to yield good results, with revenue, EBITDA and net profit at the end of 2021 growing positively. This achievement was possible thanks to the company's consistency in carrying out digital transformation, strengthening digital capabilities, and innovating in various aspects. This time, the Five Bold Moves strategy is Telkom's priority to strengthen the company's competitive advantages so that it can accelerate the realization of the vision to become a world-class leading digital telco. After successfully unlocking the Mitratel tower business, Telkom is now focusing on pushing the other four strategies that we expect to realize by the end of 2023.”

Positive Performance Across Business Segments

In the fixed line segment, IndiHome is still one of the main contributors to the Company's revenue growth, with a total contribution to the Company's revenue of 18.4% at the end of 2021 from 16.3% in the same period last year. IndiHome posted revenue of 26.3 trillion rupiah or grew 18.5% YoY. IndiHome's EBITDA margin is also increasing to 46.7% by the end of 2021. This is driven by 585 thousand new customers, totaling IndiHome's subscribers in December 2021 to 8.6 million or grew 7.3% YoY. In order to improve the quality and the best digital experience for customers, IndiHome continuously enriches its content through strategic partnerships with global content providers, such as Disney+ Hotstar and Lionsgate Play.

In the mobile segment, Telkomsel managed to book revenue for the 2021 fiscal year of 87.5 trillion rupiah with a net profit growth of 4.4% YoY. Telkomsel digital business revenue was 68.2 trillion rupiah or grew 9.5% YoY. This achievement was supported by a growing customer base reaching 176.0 million subscribers or growing 3.8% YoY, with 120.5 million mobile data users (growing 3.9% YoY). Data traffic grew 43.3% from the same period last year to 13,513 petabytes. Telkomsel also aggressively continues infrastructure development to make sure Telkomsel's digital services run optimally. Telkomsel owns 251,116 BTS by the end of 2021 or grew 8.6% YoY, 80% of which were based on 3G/4G/5G, comprising 137,613 4G-based BTS, and 113 5G-based ones. 

For its contribution in accelerating Indonesia's digital economy, Telkomsel established PT Telkomsel Ekosistem Digital (IndiCo) as a digital powerhouse dedicated to increasing user-centered digital innovation by offering products and services beyond connectivity. IndiCo will be positioned as a holding company that oversees several subsidiaries of Telkomsel's vertical business portfolio that is developing in the digital sector by optimizing the synergy of the company's superior asset ecosystem.

As of December 2021, the enterprise segment recorded an increasingly impressive performance with revenues of 19.1 trillion rupiah or 8.0% YoY growth, of which B2B IT Services and digital services for corporations were still the largest contributors. The wholesale and international segments recorded 14.3 trillion rupiah in revenue or grew by 5.6% YoY, which mainly generated from the growth of telecommunication tower, data center, and A2P services business.

In the telecommunication tower business, Mitratel posted 6.87 trillion rupiah revenue or grew 11.0% YoY with EBITDA and net profit growing by 23.9% and 129.4%, respectively. The growth in financial performance was supported by the number of Mitratel collocations and tenants which also increased by 18.9% and 39.3%, respectively. Currently Mitratel operates 28,206 telecommunication towers with a tenancy ratio of 1.5x. Mitratel telecommunication towers are located across Indonesia where 58% of them are outside Java, while the remaining 42% are on the island of Java.

Telkom remains focused on developing data center and cloud business in keeping with the significant growth in demand from the business activities of digital companies. Currently, Telkom has 27 data centers (22 domestic data centers and 5 overseas data centers, including tier 3 and 4 data centers in Singapore). Throughout 2021, data center revenue was recorded at 1.7 trillion rupiah or grew by 19.0% YoY.

The company has spent 30.3 trillion rupiah in capital expenditures until the end of 2021 or 21.2% out of its total revenue. The capital expenditure was mainly spent to strengthen network infrastructure and support to increase capacity in fixed line and mobile businesses for a better customer digital experience. This year, in order to accelerate the company's transformation, Telkom will allocate the use of the Company's net profit to focus on digital business development, in accordance with its recently-launched Five Bold Moves strategy. 

"We will continue to accelerate the transformation and develop TelkomGroup's digital business potential for optimal value creation for the company and all stakeholders. We believe this is the right step to ensure sustainable company growth in the future and support the acceleration of Indonesia's digital transformation," Ririek said. 

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