Telkom Indonesia sees revenue rise 13.8% to US$6.6 bil in 9M16: Page 2 of 2

Data revenue to keep growing
“Telkom has restructured their strategy for Indihome. They reduced temporary customers and focused on long-term subscribers. It worked. Even though they only acquired 24,000 new subscribers, their ARPU increased to Rp313,000 (US$24),” said Samuel Sekuritas’ telco, cement, and utility researcher Arandi Ariantara.

The research firm estimates that by the end of the year, there will be two million Indihome customers with an additional 600,000 customers in 2017.

“This will help boost data revenue, which we conservatively predict will grow 30% for full year 2016, and 22% in 2017,” he added.

Arandi added that the 9M16 net income results was 69% under Samuel Sekuritas’ prediction for its full year 2016 which is Rp21.22 trillion (US$1.63 billion), yet he is optimistic that Telkom’s performance will be better in the last quarter of the year, in line with country’s overall economic environment and long-holiday season.

By the end of the nine-month period, Telkom Group had utilised Rp19.9 trillion (US$1.5 billion) as capital expenditure (capex), mainly for access and backbone infrastructure development to support its fixed and mobile broadband businesses.

It has targeted to spend Rp28 trillion (US$2.2 billion) in capex this year.

Telkomsel's results

Telkom Indonesia sees revenue rise 13.8% to US$6.6 bil in 9M16: Page 2 of 2

 

Telkom Indonesia’s mobile telecommunications provider Telkomsel, posted Rp63.65 trillion (US$4.88 billion) in revenue for 9M16, a 14.4% increase compared to Rp55.63 (US$4.26 billion) in the same period last year, due to a 40.8% increase in its main growth booster, the digital business segment.

Telkomsel’s EBITDA surged 18.9% to Rp37.13 trillion (US$2.85 billion), while net profit grew 27.3% to Rp21.03 trillion (US$1.6 billion).

The digital business segment, which consists of both data and digital service segments currently accounts for 34.8% of Telkomsel’s total revenue, from 28.3% in 9M15.

Sixty-five percent of total revenue still comes from the legacy service of voice and short messaging service (SMS).

Data business grew 40.8% and the digital service segment grew 40.4% year-on-year (y-o-y).  However, with the declining trend in legacy services, Telkomsel maintained a 4% growth in this segment, supported by the voice segment which grew 9.8% y-o-y.

“The improvement in Telkomsel’s financial results is in line with the increase in the number of mobile subscribers/customers, followed by increased ARPU. This is all thanks to the surge in mobile broadband use,” said Telkom’s finance director Harry M Zen.

Telkom Indonesia sees revenue rise 13.8% to US$6.6 bil in 9M16: Page 2 of 2

 

Telkomsel’s data traffic increased by 84.7% in the first nine-months of the year to 631,269 terabytes, with 46.7% of its customers or around 76.4 million users now on mobile broadband.

The company also spent Rp2.1 billion (US$164.3 million) on marketing to promote its fourth generation long-term evolution (4G LTE) programme across the country. The promotions included sales activities during the Ramadhan and Raya season.
 

Related Stories:
 

After blocking Netflix, Indonesia’s Telkom in pact with iflix
 

Telkom Indonesia’s Q1 2016 results: Data the main revenue driver
 

Indonesia’s big 3 telcos look to win big from data
 

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