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Impressive! Indosat Ooredoo succeeded in sustaining breakthrough agile performance
Leading digital telecommunications company Indosat Ooredoo has posted strong financial results for the first half (H1) of 2021, maintaining its growth momentum despite operational challenges caused by the COVID-19 pandemic.
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(Courtesy of Indosat)
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eading digital telecommunications company Indosat Ooredoo has posted strong financial results for the first half (H1) of 2021, maintaining its growth momentum despite operational challenges caused by the COVID-19 pandemic. Committed to undertaking agile and digital transformation, the company has once again succeeded in delivering a breakthrough performance to outperform industry competitors.
In the period ending on June 30, Indosat Ooredoo’s total revenue increased 11.4 percent year-on-year (yoy) to Rp 14.98 trillion, while cellular revenue rose 11.3 percent yoy to Rp 12.4 trillion. Its B2B Enterprise unit has also shown strong performance, with emerging opportunities including IoT, IT Services, Cloud and Security helping to deliver 16.5 percent yoy revenue growth to Rp 2.65 trillion.
Its first-half earnings before interest, taxes, depreciation and amortization (EBITDA) increased 24.8 percent yoy to Rp 6.78 trillion, the telco’s highest EBITDA in the corresponding period over the past three years. This was attributed to a combination of top-line growth and cost efficiency measures that contributed 4.8 percent yoy growth to its EBITDA margin, reaching 45.2 percent in H1 2021. Indosat Ooredoo also recorded a net profit of Rp 5.6 trillion, a stellar Rp 5.94 trillion improvement compared to H1 2020.
Indosat Ooredoo recorded 5.3 percent yoy growth to total 60.3 million customers in H1 2021, with 4G subscribers growing 29.5 percent yoy to 40 million. Average revenue per user (ARPU) increased 8.2 percent yoy to Rp 34,000, driven mainly by robust 40.2 percent yoy growth in data traffic, which in turn helped contribute 19 percent growth in 4G data revenue.
In the second quarter, Indosat Ooredoo announced the launch of its first commercial 5G services in the city of Solo, Central Java, as its next step in bringing world-class digital experiences to consumers in Indonesia.
The 5G launch is part of Indosat Ooredoo’s new partnership with the municipality of Solo to accelerate economic recovery and empower the city’s youth, MSMEs and smart city vision. The Solo 5G launch has established Indosat Ooredoo’s place at the forefront of the 5G rollout in Indonesia. Moving forward, Indosat Ooredoo plans to expand commercial rollout of its 5G services to other major cities including Jakarta, Surabaya and Makassar to meet the high demand among localized consumers.
Indosat Ooredoo President Director and CEO Ahmad Al-Neama said in a statement that Indosat Ooredoo was consistently delivering strong financial performance through focused execution of the company’s transformation strategy.
“In the first half of the year, we achieved solid top-line growth, continuing a consistent revenue growth trajectory that outperformed the industry. We also delivered strong EBITDA performance, which grew twice as fast as revenue. We continue to focus on optimizing operational costs, and we also recorded a sizable net profit,” said Al-Neama.
“Our focus on simple, transparent, and innovative products, together with our commitment to network excellence, is translating into consistent and sustainable growth and profitability for our business.”
In response to the continuing impact of the COVID-19 pandemic on the people of Indonesia, Indosat Ooredoo has launched several new initiatives to support customers, employees and society.
To fulfill the increasing demand for data, the company has accelerated the expansion and strengthening of its video-grade 4G network. Indosat Ooredoo has also partnered with the government to provide free mobile data quotas for students and to deploy additional network resources at key premises, such as hospitals, to ensure that their critical communications needs are met.
Throughout the prolonged pandemic, the health and safety of its employees have remained the company’s top priority. Indosat Ooredoo continues to implement work from home measures wherever possible, and provides a range of support to help ensure employees stay connected and engaged.
“During these challenging times, we are humbled by the continued support of our loyal customers and all our stakeholders that have helped us to sustain our growth trajectory,” Al-Neama said.
“We recognize our responsibility to help people stay connected, and remain fully committed to providing communities throughout Indonesia with the digital products they need to support their daily lives while staying safe and at home.
“Working together, we will get through this challenging period, emerge stronger, and continue to support Indonesia’s transformation into a digital nation,” he concluded.
This article is joint collaboration between The Jakarta Post and Indosat Ooredoo
