State-controlled telecommunication and network provider Telekomunikasi Indonesia (Telkom) managed to post a 12.5 percent year-on-year (y/y) rise in net sales to IDR 97.0 trillion (approx. USD $7.2 billion) in the January-September 2017 period. Meanwhile, the company's net profit rose 21.7 percent (y/y) to IDR 17.9 trillion (approx. USD $1.3 billion) over the same period.
The biggest contributor to Telekomunikasi Indonesia (Telkom)'s total sales in the first three quarters of 2017 was the data, Internet & IT services business segment. It contributed IDR 42.5 trillion to total sales in the aforementioned period, equivalent to 43.8 percent of total sales, hence a crucial source of income for the company that is state-controlled, yet listed on the Indonesia Stock Exchange.
The second-most important pillar for Telkom's revenue is the voice & SMS business segment that contributed IDR 38.7 trillion to the firm's total sales in the January-September 2017 period.
Harry Zen, Finance Director of Telkom, said he is content with the performance of the company so far this year and expects to see further growth on the back of accelerating economic growth in Southeast Asia's largest economy. Rising economic growth - particularly growth of the e-commerce industry - should boost the use of data and Internet (both by individuals and companies) in Indonesia.
Telkom's Financial Highlights:
|- Telephone & SMS
|- Data, Internet & IT services||42.5||31.6||+34.3%|
in trillion IDR rupiah
Source: Telekomunikasi Indonesia, Financial Results Q3-2017
Up to September, Telkom has spent IDR 20.3 trillion (approx. USD $1.5 billion) of its capital expenditure budget for 2017, mostly used on the construction of base transceiver stations (BTS) and other infrastructure in support of its mobile business.
Telkom remains the clear dominant force in Indonesia's telecommunication industry and therefore one of the favorite Indonesian blue chips for investors. Most analysts agree that Telkom will remain the main beneficiary of rapidly rising Internet and smartphone penetration in Indonesia and therefore has positive prospects for the long-term
On Friday (27/10) shares of Telkom fell 0.24 percent to IDR 4,150 a piece. So far this year, the company's shares have risen 4.27 percent.
Stock Quote Telekomunikasi Indonesia - TLKM: