Since the COVID-19 outbreak started, people stayed home as part of broader shutdowns to protect people from the novel coronavirus. Consequently, internet usage increase significantly. PT Telekomunikasi Indonesia's home internet service, Indihome bagged Rp 5.68 trillion revenue in 1Q-2020, up 19.68% from Rp 4.24 trillion in last year's first quarter.
Besides, Telkom's cellular data and information technology segment contributed the most to its sales, booking revenue of Rp 19.20 trillion, up 3.69% as opposed to last year's first quarter.
"Quarterly, Telkom's 1Q-2020 revenue is dominated by cellular data's revenue, as many of Telkom's customers consume higher data with the COVID-19 pandemic having forced them to isolate at home. The higher data consumption is also accommodated with the newly-purchased towers from Indosat. Furthermore, thanks to the Idul Fitri period, we expect Telkom to enjoy a bump in its revenue by the time 2Q-2020 results come out," says Danareksa Sekuritas analyst Niko Margaronis in a recent report.
However, Telkom booked a slight decline in revenue and net profit in 1Q-2020. It recorded a revenue of Rp 34.19 trillion in 1Q-2020, down 1.85% (YoY) compared to Rp 34.84 trillion in last year's first quarter. Meanwhile, its net profit down by 5.82% to Rp 5.82 trillion in 1Q-2020, from Rp 6.22 trillion in last year's first quarter.
The decrease is seen in its telephone line sector, which declines 19.77% from Rp 7.08 trillion in 1Q-2019 to Rp 5.68 trillion in this year's first quarter.
Despite the year-to-year decline, Telkom did outperform its previous quarter's results. The company's Rp 34.19 trillion revenue in 1Q-2020 was a 3.8% (Q-o-Q) boost compared to Rp 32.93 trillion in 4Q-2019. The company's net profit of Rp 5.82 trillion was a significant 165.9% growth as opposed to Rp 2.2 trillion in last year's fourth quarter.
Telkom's subsidiary Telkomsel has built 7,088 base transceiver stations (BTS) in 1Q-2020 alone to accommodate higher data traffic. As of now, Telkomsel operates 219,323 BTS units, consisting of 169,000 4G/LTE units and the remaining units still transmitting 3G signal.