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Indosat Ooredoo navigates COVID-19 and builds strong growth momentum for 2021
The year 2020 has been challenging, with the COVID-19 pandemic forcing businesses and communities to adapt to new realities and ways of working.
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he year 2020 has been challenging, with the COVID-19 pandemic forcing businesses and communities to adapt to new realities and ways of working. Indosat Ooredoo, one of Indonesia’s leading telecommunications providers, has managed to navigate these challenges and ended the year on a high, posting impressive growth in the fourth quarter on the back of continued enhancements to network performance and the launch of innovative new digital offerings.
Indosat Ooredoo is in the final year of a three-year growth strategy, which seems to be delivering results. For the full year ended Dec. 31, 2020, the company recorded a solid performance, with total revenue increasing by 6.9 percent year on year (yoy) to Rp 27.9 trillion, driven by its cellular business which saw revenue jump by 11.6 percent yoy to Rp 23.1 trillion.
Indosat Ooredoo ended the year with strong momentum for 2021. In the fourth quarter of 2020, the company recorded Rp 6.1 trillion in cellular revenue, matching its closest competitor. This growth in cellular revenue and gain in market share has been sustained. In the last eight quarters, the company managed to close a gap of close to Rp 1 trillion in cellular revenue with its closest rival.
Indosat Ooredoo also saw a positive performance of its earnings before interest, taxes, depreciation and amortization (EBITDA). The company’s EBITDA reached Rp 11.4 trillion in 2020, an increase of 16 percent yoy, on the back of resilient revenue growth and a focus on operational efficiencies. The EBITDA margin increased by 3.2 percent to 40.9 percent.
Another positive note is that Indosat accelerated market share gain during 2020. Cellular subscriber numbers grew by 1.7 percent to 60.3 million by the end of 2020, and average revenue per user (ARPU) increased to Rp 31,900 from previously Rp 27,900, driven mainly by a substantial data traffic increase of 52.8 percent yoy.
Indosat Ooredoo also delivered a strong operational performance, including improving its video experience by 55.8 percent yoy, doubling its 4G download speed, and significantly improving its upload speed by 88.4 percent yoy.
“Despite the challenges created by the COVID-19 pandemic and pricing pressure, Indosat Ooredoo has continued to deliver on our three-year strategy and maintained growth momentum,” said Indosat Ooredoo’s president director and CEO Ahmad Al-Neama.
“We are grateful for the ongoing support of our loyal subscribers who have encouraged us to continue to invest in our 4G network and launch innovative new digital offerings to ensure that our customers have the best mobile experience possible,” he continued.
“Our commitment to our customers and to providing simple and relevant products have contributed to an increase in our subscriber base and data traffic volume. This growth has translated into an above-market increase in cellular revenue and a significant and accelerating gain in market share.”
During the year, Indosat Ooredoo has successfully partnered with global digital players like Facebook, Google, Cisco and Ericsson to bring advanced technologies and capabilities to fast-track digitalization of the customer experience and deliver network improvements to Indonesia.
New innovative products
To help customers stay connected and business and education to continue to operate during the pandemic, Indosat Ooredoo has continued to introduce new innovative products. Through IM3 Ooredoo Indosat launched a new IMPreneur package, a business package specially designed for small and medium enterprises (SMEs) and through Indosat Ooredoo Business, the company recently introduced the “iDo Voice” solution, which consists of three new voice services for corporate customers.
“Looking ahead, we anticipate that the shift to online lifestyles and remote working and learning, which has increased sharply during the pandemic, is here to stay. Indosat Ooredoo is fully committed to supporting our cellular and business customers adapt to the ‘new normal’ by continuing to improve network performance to meet growing demand for data,” Ahmad said.
“We believe our new digital solutions will enrich and enable our customer’s digital lives. Through these initiatives we will support Indonesia’s digital transformation agenda and create value for all our stakeholders.”
On top of that, Indosat Ooredoo’s investment in 4G network infrastructure and commitment to the company’s customers continued to be recognized by prestigious international business awards. At the Opensignal Global Mobile Network Experience Awards 2020, Indosat Ooredoo received the “Global Rising Star” award in Video Experience. Recently, Indosat Ooredoo also won the Corporate Excellence category in the Telecommunications & ICT Industry at the Asia Pacific Enterprise Awards (APEA) 2020 regional edition.
In 2021, Indosat Ooredoo will continue the upgrade and expansion of its network, focusing on 4G/LTE and the Video Grade Network capable of providing improved internet services to customers.
“Our network enhancement is part of our effort to enable the digital transformation of Indonesia, in line with the digital economy plan of Indonesian government and to accelerate national economy recovery,” Ahmad concluded.
