Indonesia’s largest operator Telkom Indonesia reported a sharp jump in profit in the first six months of 2016, with strong mobile data/internet growth offsetting declines in fixed-line and interconnect revenue.
Its net profit for the January-June period expanded 33 per cent to IDR9.93 trillion ($756 million).
Operating revenue grew 15.6 per cent in Q2 to IDR56.45 trillion, driven by a 34 per cent increase in data/internet revenue. Mobile data/internet turnover jumped 72 per cent during the period to IDR14.6 trillion.
Mobile revenue increased 2.4 per cent to IDR18.1 trillion, while fixed-line turnover dropped 3.5 per cent to IDR3.88 trillion and interconnect revenue fell 16 per cent to IDR1.88 trillion.
Operating expenses rose 14.6 per cent to IDR16.2 trillion, with higher operations and maintenance costs accounting for the majority of the increase.
Capex for the period expanded to IDR13.7 trillion, with its mobile unit Telkomsel rolling out more than 15,000 3G/4G base stations.
Telkomsel’s user base increased 9 per cent from a year ago to 157 million, nearly 30 per cent of which are postpaid customers.
Telkom’s fixed broadband customers rose 16 per cent to 4.31 million.