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Telkom posts 7.5% revenue increase to Rp 83 trillion

State-owned telecommunications operator, PT Telekomunikasi Indonesia (TLKM) recorded a 7

Mariel Grazella (The Jakarta Post)
Jakarta
Fri, March 7, 2014

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Telkom posts 7.5% revenue increase to Rp 83 trillion

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tate-owned telecommunications operator, PT Telekomunikasi Indonesia (TLKM) recorded a 7.5 percent year-on-year revenue increase to nearly Rp 83 trillion (US$7.23 billion) for the whole of 2013, making it the highest earning operator last year.

In its latest financial report, Telekomunikasi Indonesia (Telkom) also showed that it had collected a net profit of Rp 14.2 trillion, a 10.5 percent increase compared to the previous year.

Telkom is therefore, the highest profit earner as well given that other telecommunications operators saw foreign exchange losses and surging operating expenses dissipate their bottom lines.

Besides net profits, Telkom also announced that their earnings before interests, taxes, depreciation and amortization (EBITDA) surged 5.1 percent year-on-year to Rp 41.8 trillion.

Phone calls via cellular network (cellular voice) were the company'€™s chief earner, contributing 38.7 percent, or equivalent to Rp 32.1 trillion, to overall revenues. Revenues from cellular voice grew by 4.5 percent between 2012 and 2013.

Telkom provides cellular voice services through its subsidiary, PT Telekomunikasi Selular (Telkomsel). Telkomsel, a key unit for Telkom, saw revenues climb by 10.1 percent in 2013.

Taking second position as top revenue generator is services related to data, Internet and information technology (IT), which chipped in 38.2 percent to total revenues. However, revenue growth from this data/Internet business roughly triple that of cellular voice.

Earnings from data, Internet and IT services surged 14.8 percent year-on-year to Rp 31.7 trillion, as
outlined in the operator'€™s 2013 financial report.

Telkom CEO Arief Yahya pointed out that mobile data was especially crucial for the telecommunications operator.

'€œData services, especially mobile data, was the growth driver for the entire Telkom Group in 2013 by attaining a growth of 35.6 percent compared to the previous year,'€ he said.

Meanwhile, the third largest revenue maker were fixed-line phone calls (fixed-line voice), which contributed another 11.7 percent, or equal to Rp 9.7 trillion. However, fixed line voice earnings dipped 8.5 percent annually.

Arief added that Telkom sought to continue capitalizing on '€œlegacy services'€ albeit the surging significance of mobile broadband.

'€œWe expect Telkom to consistently improve our performance by exploring opportunities related to our legacy business of voice and text messages,'€ he said.

'€œWe also aim to reinforce our main business of mobile broadband while developing our mobile broadband as well as digital services and platform businesses.'€ he said.

In addition to the aforesaid revenue makers, network and interconnection service brought in 11.4 percent to overall revenues.

Telkom reported that fixed broadband users rose 28.7 percent annually to 3 million users while mobile data users climbed up by 10.8 percent to 60.5 million users.

Telkomsel booked Rp 10.5 trillion in revenue from mobile data services alone, a 35.6 percent increase year-on-year.

Meanwhile, total revenues from mobile data and fixed broadband services rose 25.6 percent annually to Rp 15.1 trillion.

Telkom'€™s overall customer base rose to 131.5 million customers, a net addition of 6.4 million customers.

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