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Indosat Ooredoo Hutchison posts strong earnings in 2021, revenue rises 12.4% yoy
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(Courtesy of Indosat)
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T Indosat Tbk reported its financial results for the fourth quarter and the full year of 2021, marking the last fiscal year for the company before its merger with PT Hutchison 3 Indonesia to form Indosat Ooredoo Hutchison, which was completed in January 2022.
Guided by its three-year turnaround strategy since 2019, Indosat Ooredoo recorded another strong performance in 2021, with the company’s total revenue increasing 12.4 percent year-on-year (yoy) to Rp 31.38 trillion.
Earnings before interest, taxes, depreciation and amortization (EBITDA) rose 21.4 percent yoy to Rp 13.88 trillion, driven by continued top-line growth and ongoing cost optimization initiatives. Net profit for the year attributable to owners of the parents is recorded at Rp 6.75 trillion, while cellular revenue jumped 10 percent yoy to Rp 25.39 trillion.
President director and CEO of Indosat Ooredoo Hutchison Vikram Sinha said Indosat Ooredoo had been able to deliver a strong and consistent performance in the last three years due to the focused execution of the company’s turnaround strategy.
“We at Indosat Ooredoo Hutchison are obsessed with delivering superior customer experience, which will continue to remain our core priority going forward,” he said.
Driven by the company’s strong focus on customer experience, executing the strategy of offering simple, relevant and transparent products, and prudent CAPEX network investments, Indosat Ooredoo’s customer base expanded by 4.4 percent yoy to 62.9 million subscribers in 2021.
The average revenue per user (ARPU) also saw an increase to Rp 34,400 from Rp 31,900 in FY 2020. Overall network experience improvements and a fine-tuned product portfolio have resulted in data traffic growth of 36.7 percent yoy, with the strong performance on operational metrics reflecting growing customer trust in the brand.
As part of Indosat Ooredoo Hutchison’s ongoing commitment to accelerate digital transformation, the company successfully launched commercial 5G services in Solo, Jakarta, Surabaya, Makassar and Balikpapan. It also expanded its 4G video-grade network coverage across the country, building 187 new sites to provide internet connectivity to hundreds of remote villages in Aceh, Sumatra, Kalimantan and Sulawesi.
During the year, the company also entered into a strategic partnership with global digital players such as Snap, Cisco and Google to accelerate digitalization for consumers and businesses across Indonesia.
Indosat Ooredoo Hutchison’s commitment to strengthen its network and drive innovation continues to be recognized by premier international business awards.
In Q4 2021, the company was named a joint winner with Ericsson in the “Managed Services Innovation” category of the Global Telecoms Awards for their Network Operation Transformation project driven by artificial intelligence, machine learning and automation. The project significantly enhanced the company’s network performance and user experiences while establishing a foundation for the rollout of 5G technology.
Additionally, Indosat Ooredoo won the “Smart City Project of the Year” award at the Asia Communication Awards for successfully pioneering smart city infrastructure and services in Sidoarjo regency and Mojokerto regency, advancing Indonesia’s goal to become a “Smart Nation”.
As part of its commitment to empowering Indonesian youth and digital talents through its sustainability programs in the Digital Education pillar, Indosat Ooredoo has conducted the IDCamp coding scholarship program, successfully attracting 46,025 participants. Since its launch in 2019, IDCamp has distributed 108,179 online coding scholarships to young Indonesian digital talents, certifying 13,226 developers.
Through the Women Empowerment pillar, Indosat Ooredoo has held SheHacks, an innovation program for Indonesian women that uses technology to address the challenges of gender inequality. Launched in 2020, SheHacks has empowered 1,548 Indonesian women to date.
In 2022, the newly merged entity Indosat Ooredoo Hutchison is now the second-largest telecom business in the country. With its bigger scale and strength, the company is better positioned to drive innovation and provide world-class digital experiences and services to our consumers.
Indosat Ooredoo Hutchison will continue to focus on driving synergies across its assets and networks, creating more value for customers and shareholders, as well as accelerating Indonesia’s digital transformation.
In the long term, the company will support the government in providing equal access to digital technology in Indonesia by strengthening its network infrastructure with an additional 11,400 new sites and expanding network coverage to 7,660 new villages throughout the country, which is slated to finish by the end of 2025.
