Telkom Accelerates Digital Transformation and Ensures the Best Service for Customers

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Telkom

PT Telkom Indonesia (Persero) Tbk (Telkom) has passed the middle of 2020 by recording the Company’s consolidated revenue of IDR 66.9 trillion and a net profit of IDR 10.99 trillion.

EBITDA (Earnings Before Interest Tax Depreciation Amortization) is getting stronger with growth of 8.9% YoY to Rp 36.08 trillion and EBITDA margin growing 6.2 ppt to 54.0%.

The net profit margin also shows a better trend compared to the same period last year to 16.4% from 16.0% previously. This was conveyed by Telkom’s Finance Director, Heri Supriadi in his presentation at the Public Expose Live 2020 activity which took place online in Jakarta.

“In the six months running this year, Telkom has performed quite well despite being faced with dynamic and challenging business conditions as well as a pandemic which of course has an impact on macroeconomics and decreases in people’s purchasing power. This cannot be separated from the company’s policy to focus on its lines. businesses that have higher profitability, “Heri said in a written statement, Thursday (27/8/2020).

IndiHome continued its good momentum with revenue growth of 19.1% YoY to Rp 10.4 trillion, supported by growth in new users and add-ons. Furthermore, Telkomsel’s digital business grew 13.5% YoY to Rp 31.9 trillion and grew its contribution to revenue by 72.4% from 62.2% last year.

Both IndiHome and Telkomsel’s digital business are currently the engines of driving revenue growth for the Company, especially during the COVID-19 pandemic. To develop a digital business platform, one of the lines of business that is also the focus of the company is a data center that is growing quite strong.

Currently, Telkom has data centers in 22 locations and has recently conducted groundbreaking data centers tier 3 and 4, the first phase of which is expected to start operating in mid-2021.

Meanwhile, to support business activities and ensure the best service for customers, Telkom continues to build telecommunications infrastructure, which until the end of June, the fiber-based backbone has reached 165,850 km and the number of Telkomsel’s Base Transceiver Stations (BTS) has reached 228,066 units.

Furthermore, the Digital business recorded better performance from the previous year with revenue growth of up to 12% YoY and a contribution of 7.6% to the Company’s total revenue. This is mainly driven by B2C digital services and digital platforms.

OTT video revenue, which grew by 16% from the same period last year, is the largest contributor to digital business revenue, followed by the Internet of Things (IoT) and Machine to Machine (M2M) portfolios.

To increase the revenue portion of the digital business, the company has developed several digital initiatives, one of which is providing a variety of digital products and solutions. Until the end of June 2020, Telkom managed around 152 active digital products from Amoeba, Indigo, and Tribe, which are a means of managing company innovation.

Another digital initiative carried out by Telkom is the formation of MDI Ventures in 2015 which is fully operational in 2016. MDI is a venture capital initiative by Telkom, which provides seed capital to capital for growth (growth capital) for small-scale startup companies. and middle class in Southeast Asia and Global.

MDI has invested in 43 startups from 12 countries. Some time ago, MDI announced the distribution of a new investment fund of USD 500 million to support startup development and develop the company’s digital capabilities.

COVID-19 indirectly requires Telkom to accelerate efforts to transform into a digital telecommunications company. The pandemic provides space for Telkom to do digital acceleration.

 opportunity by presenting solutions through a variety of digital services supported by strong digital connectivity and digital platforms. To that end, Telkom continues to build infrastructure that is budgeted from the company’s capital expenditure (capital expenditure), which will be used to strengthen all business lines, including mobile related business, fixed broadband and other businesses.

“In addition, the existence of a pandemic requires Telkom to do three things, namely accelerating the transformation process, minimizing the impact of the pandemic on the business and accelerating the digital platform and service business, so that in the future Telkom can continue to survive by providing healthier and more profitable performance,” Heri concluded. . Also attending the event were Director of Digital Business Telkom, Muhamad Fajrin Rasyid, Director of Consumer Service Telkom FM Venusiana R. and Director of Finance of Telkomsel Leonardus Wahyu Wasono.