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Telkom’s revenue growth slows in 2024, net profit declines
Telkom’s Telkomsel currently leads Indonesia’s mobile market, closing out 2024 with 159.4 million subscribers, followed by IOH with 94.7 million users and XLSmart with 94.5 million.
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Telkomsel launches its 5G network service with an event staged in Jakarta on May, 27, 2021. (Courtesy of Telkomsel/-)
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T Telkom Indonesia booked revenue of Rp 150 trillion (US$8.9 billion) in 2024, up just 0.5 percent year-on-year (yoy), marking a slowdown from the 1.3 percent increase recorded the previous year.
As the state-owned telco also reported on Friday, a 2 percent increase in operating expenses contributed to a 3.7 percent decline in net profit last year to Rp 23.7 trillion, which compares with an 18.3 percent rise in its bottom line in 2023.
Telkom’s growth continues to be driven by its mobile arm, Telkomsel, which absorbed the company’s home broadband service IndiHome in the second half of 2023.
Telkomsel posted a solid 10.7 percent revenue increase to Rp 113.34 trillion, aided by a base effect from the IndiHome integration.
Despite topline growth, both mobile and broadband average revenue per user (ARPU) remained under pressure. Mobile ARPU dropped 6.6 percent yoy to Rp 44,400 per month, while IndiHome’s ARPU slipped 6 percent to Rp 237,600.
However, Telkom saw a glimmer of recovery in the final quarter of 2024, with mobile ARPU rising 2 percent quarter-on-quarter, buoyed by pricing strategies, seasonal demand and pre-to-postpaid conversions. IndiHome’s ARPU, by contrast, continued its decline, albeit at a slower pace of 0.8 percent.
“The quarterly mobile ARPU increase is the first sign of reversal since Q2 2023, when it stood at Rp 49,700,” said Theodorus Melvin, investment analyst at Stockbit, in a statement on Monday. “While the annual trend is still down, this rebound is encouraging for the telco industry, especially amid intensifying price wars in 2024.”
