Jump in Data Business Helps Telkom Dial Up 12% Income Rise
Tito Summa Siahaan
State-controlled telecommunication firm Telekomunikasi Indonesia reported an increase in net income in the first half of this year, thanks to growth in its data business.
Net income at the Bandung-based company rose 11.9 percent to Rp 8.9 trillion ($943 million) in the first half of this year compared to the same period last year.
Revenue at Telkom, the country’s biggest telecommunication firm, rose 6.3 percent to Rp 36.7 trillion.
The increase in revenue was short of the 11 percent estimated growth for the first half this year. In the first quarter, Telkom’s revenue rose 6.5 percent to Rp 17.7 trillion.
Expenditure at Telkom, which is 57 percent controlled by the government, increased 6.05 percent to Rp 24.8 trillion.
In Telkom’s official financial statement, president director Arief Yahya said the increase in revenue was mainly attributable to a better performance from data services and its cellular businesses.
“Revenue from data services increased 10.3 percent, or Rp 1.2 trillion, while cellular business posted a 8.4 percent increase in revenue, or Rp 1.1 trillion,” he said.
Revenue from data services was Rp 12.7 trillion, while Telkom’s cellular business posted a revenue of Rp 14.6 trillion, according to a statement released on Monday.
Telkom’s revenue from cellular business was mainly from its 65 percent stake in Telkomsel, the country’s largest mobile phone provider, with around 110 million registered subscribers. The remaining 35 percent in Telkomsel is owned by Singapore’s SingTel.
With the number of mobile phone accounts in the country having surpassed the population, indicating a saturated market, mobile phone firms have gradually shifted business focus from calls and text messaging charges to data services. Mobile phone is the instrument of choice for many Indonesians to access the Internet. Some 57 percent of people can access their Internet through their mobile phones, 10 percentage points higher than the number who can access it via computer.
Last month, Telkom announced that it had spent 60 percent of its Rp 17 trillion capital expenditure budget this year,.
Telkom in March launched Groovia TV, the country’s second interactive television service. Telkom also planned to invest $50 million to build telecommunications infrastructure in East Timor.
Telkom’s shares dropped 2.7 percent to Rp 9,050 on Monday but have gained 28.3 percent since the beginning of the year.