"In the nine months of 2020, Telkom has been able to record good and healthy performance by continuing to focus on improving services and levels of profitability," Telkom's president director, Ririek Adriansyah, said in an official statement here on Thursday.
The company's net profit margin in the third quarter of 2020 also improved to 16.7 percent from 16 percent earlier.
Telkom's consolidated income amounted to Rp99.94 trillion in the third quarter of 2020. The company's EBITDA (Earnings Before Interest, Tax, Depreciation, and Amortization) increased by 7.1 percent to reach Rp53.59 trillion, with EBITDA margin increasing significantly to 53.6 percent from 4.9 percent in the year-ago period.
"This achievement cannot be separated from IndiHome's contribution, which is one of the main engines for the company's revenue growth, in addition to the mobile data business, which continues to grow well. This is in line with the company's business focus on three digital business domains, namely digital connectivity, digital platform, and digital services," Adriansyah said.
Telkomsel, a subsidiary of Telkom in the mobile business segment, recorded digital business growth of 10.6 percent, bringing it to Rp47.66 trillion, with its contribution to Telkomsel's total revenue increasing to 73.2 percent.
Meanwhile, the triple-play fixed broadband service, IndiHome, recorded a revenue of Rp16.1 trillion, up 17.1 percent from the same period last year.
IndiHome’s subscriber base grew by 752 thousand by the end of the third quarter of 2020, bringing the total number of subscribers to more than 7.76 million. Telkom said it is upbeat about reaching its target of 8 million subscribers by the end of this year.
Meanwhile, the company’s revenue from the wholesale and international business segment increased by 24.9 percent year on year to reach Rp10.2 trillion, driven by an increase in the telecommunications tower and voice wholesale businesses.
Telkom finance director Heri Supriadi said that in the midst of the COVID-19 pandemic, Telkom has committed to continuing its investment in accelerating digital business and providing the best products and services to the public.
"Telkom has spent a Capex (capital expenditure) of Rp. 17.9 trillion, mostly for infrastructure in order to improve service quality. With maintained investment, we are optimistic and hope to close 2020 with increasingly healthy performance and good profitability," he said.
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Translator: Zubi Mahrofi, Fardah
Editor: Rahmad Nasution
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