Telkom Indonesia reported solid top-line and bottom-line growth as its mobile unit posted double-digit growth in revenue, net profit and EBITDA last year.

The state-owned firm also saw strong gains in both mobile broadband and fixed broadband users.

Telkom’s net profit increased 2.8 per cent in 2014 to IDR14.6 trillion ($1.1 billion) last year, while its revenue grew 8.1 per cent to IDR89.7 trillion. Its performance slowed in Q4 due in part to the depreciation of rupiah.

Telkomsel’s net income rose 10 per cent, EBITDA grew 11.9 per cent and revenue expanded 10.4 per cent.

Telkom CEO Alex Sinaga said last year was Telkomsel’s third consecutive year of triple double-digit growth.

Mobile broadband and digital services revenue jumped 34 per cent to IDR15.7 trillion. Blended ARPU was up 2.8 per cent to IDR39,000 ($3.00) due to the general increase in data consumption. Mobile data users increased 12 per cent to 67.9 million.

The mobile operator, the market leader with a 45 per cent market share, added 9.1 million subscribers in 2014, bringing its total to 140.6 million. Mobile voice revenue rose 6.7 per cent.

Telkom’s revenue from data, internet and information services increased 15.6 per cent to IDR37.7 trillion last year. Its fixed broadband user base increased 13 per cent to 3.4 million.

Total expenses increased 9.4 per cent year-on-year, with operation and maintenance expenses (accounting for 37 per cent of total expenses) expanding 15.4 per cent to IDR22.3 trillion as Telkomsel added additional base stations to keep up with growing mobile broadband demand.

The operator said it would likely lower its dividend by more than 40 per cent this year in line with the government’s commitment to increase the capital structure of the country’s state-owned enterprises. A dividend payment of IDR5.84 trillion was expected this year.

Telkom and Telkomsel’s reported EBITDA margins of 51.1 per cent and 56.2 per cent, respectively, relatively unchanged year-on-year.

Moody’s expects their EBITDA margins to decline slightly over the next two years due to higher operating expenses associated with accelerated infrastructure deployment, specifically around Telkomsel’s 3G network, said Nidhi Dhruv, a Moody’s analyst.