Jakarta, 5 November 2020 – PT Telkom Indonesia (Persero) Tbk (Telkom) ended the third quarter (Q3/2020) a healthy performance and a sustained level of profitability. In the midst of the COVID-19 pandemic, the Company recorded a consolidated income of Rp99.94 trillion in the first nine months of 2020. The Company's EBITDA (Earnings Before Interest Tax Depreciation Amortization) increased by 7.1% to Rp53.59 trillion with a significantly strengthened EBITDA margin of 4.9ppt from the same period last year to 53.6%. Net profit was recorded at Rp16.68 trillion or grew by 1.3% with a net profit margin that also performed better at to 16.7% compared to 16.0% from the same period last year. 

Telkom President Director, Ririek Adriansyah said, "for nine months in 2020, Telkom was able to record good and healthy performance by continuing to focus on improving services and level of profitability. IndiHome's contribution played a noteworthy part to this achievement, as it 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."

Telkomsel, a Telkom subsidiary in the mobile business segment, recorded good digital business growth of 10.6% to Rp47.66 trillion with a rising contribution to 73.2% out of Telkomsel's total revenue. More than 170 million subscribers, with mobile data subscribers totaling 117.3 million (growing by 4.6% YoY) was the main driver of this achievement. This pushed data service consumption to grow 42.5% from the same period last year and became a catalyst for data ARPU increase. Data traffic also increased by 39.6% to 6,681,637 TB.

The fixed broadband triple play service, IndiHome, has recorded an increasingly strong performance both in financial and operational terms, and is becoming one of the Company's main business lines in the future. IndiHome recorded Rp16.1 trillion revenue that grew 17.1% from the same period last year. IndiHome subscribers grew by 752,000 by the end of the third quarter of 2020, reaching more than 7.76 million subscribers in total. The company is more optimistic about reaching the target of 8 million subscribers by the end of this year.

On the other hand, the business fundamentals of the Enterprise segment are getting healthier, in which Telkom implements policies that focus on business lines with higher profitability.

Furthermore, the Wholesale & International Business segment performed well, too with its revenue increasing by 24.9% Y-o-Y to Rp10.2 trillion. The increase in the telecommunication tower business and Voice Wholesale was the main driver of this achievement. In October 2020, the Company restructured its telecommunication tower business portfolio by transferring ownership of 6,050 Telkomsel towers to Mitratel. Its purpose was to create value generators for the telecommunications tower business, which has the potential to anticipate the arrival of 5G technology and makes Mitratel the leading tower provider in Indonesia.

Telkom Finance Director Heri Supriadi said, “In the midst of the COVID-19 pandemic, Telkom is committed to continuing to invest in order to accelerating digital business and providing the best products and services for the people. Up to the third quarter of 2020, Telkom has spent Rp 17.9 trillion in Capex, mostly for strengthening our infrastructure to improve our service quality. With a maintained investment, we are optimistic and hope to end 2020 with an increasingly healthy performance and good profitability."

The pandemic is estimated to continue to providing space for digital acceleration. Telkom sees this opportunity to offer solutions with a variety of digital services supported by strong digital connectivity and digital platforms. Telkom will continue to innovate in providing digital products and services, not only to provide the best digital experience for the people but also to drive the national economy," Ririek said.