Telkom's Profit In The First Quarter Of 2020 Decreased 5.79 Percent

Illustration. (Photo: Telkom)

JAKARTA - PT Telkom Indonesia (Persero) Tbk (Telkom) recorded revenues of IDR 34.19 trillion in the first quarter of 2020. The state-owned telecommunications company net profit is IDR 5.86 trillion.

However, it should be noted, Telkom's financial performance has slightly decreased when compared to the achievements in the first quarter of 2019. Telkom's revenue of Rp. 34.19 trillion decreased by 1.85 percent compared to the achievement in the same period the previous year which was Rp. 34.84 trillion.

Along with the decrease in revenue, the profit for the period attributable to the company owners also decreased. As of the first quarter of 2020, Telkom's profit decreased 5.79 percent to Rp.5.86 trillion, from the same period previously amounted to Rp.6.22 trillion.

President Director of Telkom, Ririek Adriansyah explained that, in the midst of disruptive industrial conditions, full of challenges and intense competition, as well as the COVID-19 pandemic that has hit almost all countries in the world including Indonesia, Telkom can still record profits.

"This achievement was contributed by Telkomsel's digital business and IndiHome fixed broadband as the company's engine of growth, which recorded growth of 16.3 percent and 19.7 percent respectively over the same period last year," he said, in a written statement received by VOI, Wednesday, July 1st.

Ririek said that the two business lines were expected to be a mainstay for the company's future business growth. In the mobile segment, Telkom, through its subsidiary Telkomsel, has also shown better digital business performance with revenues of IDR 15.83 trillion.

Biggest Contribution

Furthermore, Ririek said, the performance of the mobile segment was driven by data and digital services revenue, with a total contribution of 70.6 percent of Telkomsel's total revenue, an increase from the contribution of 61.4 percent last year.

"This is inseparable from the large customer base of 162.6 million subscribers, with mobile data users recorded at 105.1 million subscribers," he said.

According to Ririek, the average consumption of data services also increased significantly by 42.4 percent to 6,533 MB per customer. So that data traffic also continues to increase by 41.7 percent to 1,996,842 terabytes.

With such rapid growth in data traffic, during the first three months of 2020, Telkomsel has built more than 7,088 Base Transceiver Stations (BTS) which are all 4G-based. Until now, Telkomsel has a total of 219,323 BTS units with 3G and 4G / LTE BTS reaching more than 169 thousand units or 77.1 percent of the total.

"IndiHome fixed broadband service continues to maintain a stronger performance with revenues of Rp 5.1 trillion. The number of IndiHome subscribers in the first quarter of 2020 also grew 31.4 percent year on year (yoy) to 7.3 million subscribers," he said.

Ririek said, as an effort to maintain its position as market leader, IndiHome has issued a more affordable package to target a wider customer segment in order to increase fixed broadband penetration in Indonesia.

"IndiHome also continues to strive to add digital services and interesting content," he said.