Smartfren, Telecommunication Company From Sinar Mas Group Owned By Conglomerate Eka Tjipta Widjaja Earns IDR 24.98 Billion Profit From Previously Loss IDR 396.82 Billion

JAKARTA - PT Smartfren Telecom Tbk (FREN) has a brilliant performance in the first three months of this year. The company managed to turn losses into profits in the first quarter of 2022.

In Smartfren's financial report, quoted on Monday, May 30, the company posted a net profit for the period attributable to owners of the parent company of IDR 24.98 billion for the first three months of 2022. The profit position rose significantly from a net loss of IDR 396.82 billion in the first quarter. 2021.

This is because FREN made a profit from the change in the fair value of the conversion option of IDR 11.10 billion from the previous loss of IDR 9.53 billion. Foreign exchange losses due to foreign currencies also decreased by 90.28 percent to IDR 17.14 billion in the first quarter of 2022, from the same period last year of IDR 176.47 billion.

The improvement in the bottom line position is in line with the increase in operating income. FREN scored an operating income of IDR 2.67 trillion in the first quarter of 2022, up 11.30 percent compared to the same period last year of IDR 2.40 trillion. FREN's operating income was largely contributed by data revenues of IDR 2.40 trillion in the first quarter of 2022, up 9.09 percent from IDR 2.20 trillion in the first quarter of 2021.

Furthermore, FREN's non-data income contributed IDR 69.96 billion, up 8.78 percent from the previous IDR 64.31 billion, and interconnection services contributed IDR 49.87 billion, from the previous IDR 46.32 billion. Lastly, other income contributed IDR 151.76 billion, from the previous IDR 90.98 billion.

In the first quarter of 2022, the company also recorded an increase in operating expenses of 2.41 percent to IDR 2.54 trillion, from IDR 2.48 trillion on an annual basis or year-on-year (yoy). Although operating expenses increased, FREN was still able to create an operating profit of IDR 136.55 billion in the first quarter of 2022, from a loss in the same period last year of IDR 80.40 billion.

As of the end of March 31, 2022, the company recorded an increase in total assets to IDR 43.97 trillion, from IDR 43.35 trillion at the end of December 2021. Meanwhile, FREN recorded an increase in its liability position to IDR 31.29 trillion in March 2022, from IDR 30.70 trillion as of December 2021.

This liability increased due to the increase in non-current liabilities to IDR 9.82 trillion, from last year's position of IDR 9.60 trillion. It was noted that the company's total equity also increased slightly to IDR 12.67 trillion, from IDR 12.65 trillion.