Jakarta, 28 June 2021 – PT Telkom Indonesia (Persero) Tbk (Telkom) closed the first quarter of 2021 by consistently showing its profitability with increasing margins. The Company recorded Rp33.95 trillion of consolidated revenue for the first quarter of 2021. The Company’s Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) was Rp18.81 trillion, or grew 0.3% YoY and recorded a net profit of Rp6.01 trillion or grew 2.6% over the same period last year. The EBITDA margin increased to 55.4% from 54.9% last year, and Net Profit margin increased to 17.7% from 17.1%. The EBITDA and net profit achievements in the first quarter of 2021 was higher than analysts' consensus. This achievement is possible due to IndiHome's fixed broadband service's more solid performance from time to time. IndiHome's revenue grew by 25.0% YoY to reach Rp6.35 trillion, driven by customer growth and an improving Average Revenue Per User (ARPU).

As a result, IndiHome's revenue contribution increased quite significantly from 14.8 percent last year to 18.7 percent of the company's total consolidated revenue. IndiHome's EBITDA margin also increased quite significantly to 45.2% from 38.9% in 2020. This was possible with 133 thousand new subscribers, which totaled the subscribers to 8.15 million or grew 12.3% YoY by the end of March 2021. IndiHome service is available in 496 regencies and cities in Indonesia and it continues to enrich its content offered to customers. One of the content enrichment on offer is IndiHome Cinema, a live streaming and TV on demand platform on IndiHome TV.

In the Mobile segment, Telkomsel digital business showed better performance with Rp16.32 trillion revenues driven by Data and Digital Services, which contributed 76.9% of Telkomsel's total revenue. It was an increase from the 70.6 % contribution last year. This is due to the large customer base with 164.69 million subscribers, with recorded 114.83 million subscribers mobile data users, or 9.3% YoY growth. Data traffic also continued to increase by 59.7% to 3,113 Petabytes. Telkomsel digital business also gets support from TelkomGroup synergy. 

With such rapid data traffic growth, Telkomsel continues to build 4G Base Transceiver Stations (BTS) during the first three months of 2021. To date, Telkomsel has more than 234 thousand BTS units, or increased 6.8% from the same period last year, with 3G and 4G/LTE BTS around 183 thousand units or 78.5% of the total Telkomsel BTS.

On 27 May, Telkomsel officially launched 5G services and secured its position as the first telecommunications operator to offer the 5G technology in Indonesia. Telkomsel 5G services currently cover several areas in Jakarta, Surabaya, Makassar, Bali, Batam, Medan, Solo, Balikpapan, and Bandung. Telkomsel also had a makeover look with changes in brand identity and product simplification.

“The ongoing pandemic has continuously increased the public's need for digital technology and services. Telkom seized this opportunity by providing the best connectivity, platforms and digital services that are expected to support various community activities. This is of course also in line with the ongoing corporate transformation,” Telkom President Director, Ririek Adriansyah said in Jakarta (28/6).

The Enterprise segment posted Rp 4.1 trillion revenue, supported by application services and digital platforms (data center and cloud). One of the Enterprise segment’s business focuses is Data Center, which grows significantly along with the increase of digital business activities. Telkom is building Telkom Hyperscale Data Center, a Tier 3 and Tier 4 data center, which is expected to complete and start operational in the second half of 2021.

In the Wholesale and International Business segment, Telkom recorded Rp3.3 trillion revenues. Despite the declining trend in the international wholesale voice business, Telkom had a 17.0% increase in the telecommunication tower business compared to the same period last year. The Company believes that the telecommunication tower business still has the potential to grow along with the presence of 5G technology in Indonesia. In addition, Telkom also continues to develop the neuCentrIX data center infrastructure to serve the wholesale market for the telecommunications industry and the digital ecosystem, for domestic and global businesses. 

In the digital business, Telkom continues to focus on developing digital platforms and services. For digital services, Telkom establishes partnerships with digital champions such as startup decacorn to generate synergy value that impacts on the company's business development. Telkom also continues to foster innovation internally and externally, and invest in digital startups that have the potential to strengthen existing business lines through synergy and collaboration. Meanwhile, to develop a digital platform, Telkom is actively implementing a strategy to forge partnerships with leading tech giants or global industry players, to accelerate TelkomGroup platform business development.

Despite the telecommunications industry’s tight competition and the pandemic-induced challenges, Telkom continues to develop broadband infrastructure for mobile and fixed lines to provide the best experience for customers. This is indicated by the Company's capital expenditures absorption of Rp5.7 trillion in the first quarter of 2021 or 16.9% of the company's total revenue. In addition to developing broadband infrastructure and telecommunication towers (digital connectivity), TelkomGroup intensively continues to develop digital platforms (data centers) and digital services as value added to the company's core competencies in order to continue to grow and develop.

"This is a good and challenging start for Telkom in 2021. In the future, Telkom will continue to present new digital innovations, because we believe that digitalization will provide a huge opportunity for this nation to boost competitiveness quickly and efficiently in various fields, such as economics, education, health, and others. So that eventually, Indonesia will be able to leapfrog, to be on par with other developed countries in the world in a short time,” Ririek said. 

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