Indonesian fixed and broadband provider PT Telekomunikasi Indonesia (Telkom) says its IndiHome triple-play fibre service had two million subscribers at 30 June 2017, up from 1.6 million at the start of the year. Going forward, the company says its fibre-to-the-home (FTTH) network will be being used by three million people as Telkom continues efforts to modernise its legacy copper-based network with new technology.
Telkom’s first quarter results for the three months ending 31 March 2017 highlighted continued ‘strong momentum’ and double-digit year-on-year growth in revenue, EBITDA and net income, of 12.6%, 14.7% and 45.8% respectively. The company booked revenue of IDR31.022 trillion (USD2.330 billion) in the period under review, compared to IDR27.542 trillion in 1Q16 as data, internet and IT services acted as a key driver of growth. Cellular (i.e. Telkomsel) voice and SMS turnover was up slightly (0.9% y-o-y) to IDR12.995 trillion, but data/internet-based revenue increased 25.4% from IDR10.301 trillion to IDR12.917 trillion. Interconnection sales were also up 17.4% y-o-y at IDR1.270 trillion, but fixed line voice revenue declined by 4.1% to IDR1.866 trillion, attributed to cannibalisation from mobile services resulting in declining fixed line traffic.
EBITDA in the first quarter of 2017 amounted to IDR16.809 trillion, up from IDR14.655 trillion in the same period of 2016, and net income soared to IDR6.688 trillion yielding a net income margin of 21.6%, up from 16.7% in 1Q16. Meanwhile, Telkom spent more than IDR6 trillion in CAPEX in the January-March period, up 6.1% y-o-y, with its mobile arm Telkomsel using its allocation for radio access network (RAN) development, and Telkom committing significant sums to develop access and backbone infrastructure, including satellites and submarine cable systems (e.g. IGG and SEA-US) to support fixed as well as mobile broadband businesses, while a portion of CAPEX was utilised for other projects including tower and property, it said.