Indosat Ooredoo revenue up 6.9% in 2020
22 February 2021 | Melanie Mingas
Indosat Ooredoo recorded a full year revenue increase of 6.9% on the previous year as cellular revenues also increased, by 11.6% year on year.
The "solid performance" saw total revenue reach IDR 27.9 trillion, while cellular revenues hit IDR 23.1 trillion.
Cellular subscriber numbers grew by 1.7% to 60.3 million by the end of 2020, while ARPU increased to IDR 31.9 thousand – up from IDR 27.9 thousand – driven mainly by a 52.8% leap in data traffic year on year.
EBITDA reached IDR 11.4 trillion, an increase of 16% year on year, due to what Indosat Ooredoo described as "resilient revenue growth and a focus on operational efficiencies". The EBITDA margin increased to 40.9%.
President director and CEO of Indosat Ooredoo, Ahmad Al-Neama said: “Despite the challenges created by the pandemic and pricing pressure, Indosat Ooredoo has continued to deliver on our three-year strategy and maintained growth momentum. We are grateful for the ongoing support of our loyal subscribers that have encourage us to continue to invest in our 4G network and launch innovative new digital offerings to ensure that our customers have the best mobile experience possible. Our commitment to our customers and to provide simple and relevant products has contributed to an increase in our subscriber base and data traffic volume. This growth has translated into an above market increase in cellular revenue and a significant and accelerating gain in market share.”
Following the rest of the group, Indosat Ooredoo is pioneering a series of new services, packages and focus areas around digitalisation and digital products.
In its results, the telco recalled how it had partnered with digital players like Facebook, Google, Cisco and Ericsson to "bring advanced technologies and capabilities to fast-track digitalisation of the customer experience and deliver network improvements to Indonesia".
The firm said it continued to introduce new products to help customers stay connected as well as business and education to continue to operate during the pandemic. Through IM3 Ooredoo the new IMPreneur package launched, a business package specially designed for SMEs and through Indosat Ooredoo Business, the “iDo Voice” solution was recently introduced, which consists of three new voice services for corporate customers.
For 2021, Indosat Ooredoo said it will continue the upgrade and expansion of its network, focusing on 4G/LTE and the Video Grade Network capable of providing improved internet services. However, on guidance it said that although there is confidence that this year will bring continued growth momentum, " we are cautiously optimistic in guiding revenue growth to be in-line with the industry". The EBITDA margin is expected to be in the low 40s, and Capex at approximately IDR 8 trillion.
Al-Neama said: “Looking ahead, we anticipate that the shift to online lifestyles and remote working and learning, which have increased sharply by the pandemic, are here to stay. Indosat Ooredoo is fully committed to supporting our cellular and business customers adapt to the new normal by continuing to improve network performance to meet growing demand for data. We believe our new digital solutions will enrich and enable our customer’s digital lives. Through these initiatives we will support Indonesia’s digital transformation agenda and create value for all our stakeholders.”
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