ASEAN KEY DESTINATIONS
Telkom sees 14.4% growth in net profit in 2017
State-owned telecommunications company PT Telkom Indonesia saw its net profit grow 14.4 percent to Rp 22.1 trillion (US$1.61 billion) in 2017, compared to the figure in 2016, according to a press statement issued by the company on Thursday.
Meanwhile, the company’s revenue increased by 10.2 percent to Rp 128.3 trillion, compared to the previous year's figure.
Telkom’s revenue mostly comes from data sales as well as internet and IT services, which grew by 28.7 percent in 2017, contributing 43.2 percent to the total revenue.
The growth was due to an increase in smartphone use and an increase in customers for the IndiHome and ICT Solution services.
“The increasing contribution from the data, internet and IT service segment indicates that Telkom is on track to becoming a digital telecommunications company,” said Telkom president director Alex J. Sinaga in the statement.
Meanwhile, the company's operational and maintenance costs increased by 17.1 percent in line with the aggressive development of broadband infrastructure in the backbone, mobile and fixed line segment.
Meanwhile, the revenue of Telkom’s subsidiary, Telkomsel, was recorded at Rp 93.2 trillion, an increase of 7.5 percent from 2016.
Telkomsel’s growth was supported by digital business that grew by 28.7 percent from 2016 due to an increase in smartphone users, which pushed data consumption, contributing 42.3 percent of Telkomsel’s total revenue.
As of late 2017, Telkomsel had 196.3 million customers.
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