Opening Financial Reports in the First Quarter of 2021, Indosat Ooredoo Profitable or Unprofitable?

Kapanlagi.com - It is not easy for every company to survive in the Covid-19 pandemic like now. However, with a series of innovations and other important breakthroughs, it turns out that there are many companies that can rise, even able to record satisfactory performance in the first quarter of 2021.

This is what Indosat Ooredoo experienced. In an open manner, this telecommunications company presented its financial report in the first quarter of 2021. So, what are the results?

Success in Maintaining Last Year's Achievement

Who would have thought, Indosat Ooredoo was able to maintain its performance from the previous year, after successfully recording extraordinary financial performance in the first quarter of 2021. This was revealed directly by the President Director and CEO of Indosat Ooredoo, Ahmad Al-Neama.

"Despite various operational challenges due to the Covid-19 pandemic, Indosat Ooredoo has achieved satisfactory initial performance in 2021. Our growth momentum continues to build, reflected in double-digit revenue growth and solid EBITDA performance, as well as recording net profit," said Ahmad.

He continued that the performance of this first quarter becomes a new benchmark for Indosat Ooredoo's financial performance in the future. "Our strategy to provide simple and relevant products, supported by our efforts to maintain network superiority, has driven the acceleration of our position in the mobile market share and a strong rebound in our business," he added.

So, Profitable or Unprofitable?

Fortunately, Indosat Ooredoo is generally profitable in the first quarter of 2021. The company's financial performance until March 31, 2021 recorded that Indosat Ooredoo's total revenue grew by 12.6% YoY to Rp7.3 trillion. In addition, cellular revenue increased by 12.5% YoY to Rp6 trillion. The enterprise business also showed signs of recovery in the first quarter of 2021 with a 17.1% YoY growth in enterprise revenue to Rp1.3 trillion.

Not only that, EBITDA also increased by 42.5% YoY, reaching Rp3.4 trillion. This is due to a combination of top-line growth and cost efficiency contributing to a +9.7pp YoY growth in EBITDA margin, reaching 46.2% in the first quarter of 2021. Interestingly, these results are the highest in the past seven quarters. Furthermore, Indosat Ooredoo also recorded a net profit of Rp172 billion, a rapid increase of Rp778 billion compared to the first quarter of 2020.

Not only that, Indosat Ooredoo also recorded a healthy customer base with 60 million loyal customers, a 7% YoY growth. Average Revenue per User (ARPU) increased by 11% YoY to Rp32.7 thousand. This is driven by significant data traffic growth, which increased by 46% compared to the same period last year. From this series of financial reports, it is clear that Indosat Ooredoo is safe from the word 'loss' in the first quarter of 2021.

Continuously Holding the Position of the Second Largest Operator in Indonesia

Interestingly, Indosat Ooredoo's success in recording an increase in revenue in the first quarter of 2021 has positioned it as the second largest telecommunications operator in Indonesia. This is based on the number of customers and revenue. Based on data analysis from BRI Danareksa Sekuritas gathered from investor.id, the company's revenue grew by 6.9% to Rp27.92 trillion in 2020 compared to Rp26.11 trillion in 2019. The impressive growth rate and revenue of the company far surpassed its competitor, which only recorded a growth rate of 3.5% from Rp23.13 trillion to Rp26 trillion.

Not only that, Indosat Ooredoo also recorded a customer base of 1.7%, from 59.3 million to 60.3 million customers, with an increased blended ARPU of Rp31.9 thousand. Meanwhile, its competitor only achieved a customer base of 57.89 million with an average blended ARPU of Rp36 thousand in the same period.

In terms of infrastructure, Indosat Ooredoo's 4G BTS network has reached 62,900 units by the end of 2020, compared to 48,000 units in the previous year. This number even exceeds the 4G BTS owned by other operators, which only amounted to 54,300 units in the same period. Furthermore, in terms of data traffic, Indosat Ooredoo increased by 52.8% from 3,211 petabytes to 4,907 petabytes by the end of 2020. Once again, this achievement surpasses the competitor with traffic data growing only 46.7% from 3,320 petabytes to 4,869 petabytes. As a result, Indosat Ooredoo is able to outperform the competitor.

Not Forgetting to Pamper Customers with the Best Connectivity Experience

In addition to disclosing financial reports in the first quarter of 2021, which ended with a large profit, Indosat Ooredoo also did not forget to pamper its customers. During the first quarter of 2021, Indosat Ooredoo delivered good news by announcing the signing of a Sale and Leaseback Agreement with PT EPID Menara Asset Co (Edge Point Indonesia) for more than 4,200 telecommunications towers.

The agreement recorded transactions worth IDR 11 trillion as capital for Indosat Ooredoo to build solid growth, both through further development of its network performance and the launch of new innovative digital solutions. With this, the customer experience in using Indosat Ooredoo's best network is felt to the maximum.

With such a myriad of achievements, Indosat Ooredoo also expresses its gratitude to loyal customers.

"I would like to thank our loyal customers and all our stakeholders for their support, which has motivated us to achieve these extraordinary results. We remain committed to ensuring connectivity and the availability of digital products and services needed by the people throughout Indonesia during this difficult time and to accelerate Indonesia's transformation into a digital nation," concluded Ahmad.

Keep using Indosat Ooredoo so that you can experience a better internet experience. Hurry up and enjoy the promotions and benefits now, KLovers!

(kly/tmi)