by Ardian Wibisono
Indonesia’s second largest telco company Indosat Ooredoo booked a solid start in 2020 by reporting Rp 6.5 trillion revenue in the first quarter this year, the figure representing a 7.9% increase year-on-year (YoY). The revenue increase was contributed by cellular revenue that increased by 10.6% YoY to Rp 5.4 trillion on the back of rising Average Revenue per User (ARPU) driven by a data traffic increase of 63% YoY. Indosat Ooredoo ARPU increased to Rp 29,600 from Rp 26,500 in the same period last year as more people spend more time on the internet.
Despite the COVID-19 pandemic, the company's strong performance in the first quarter is a result of Indosat Ooredoo’s fast action in responding with the situation. While implementing health and safety protocol, the company accelerated its network rollout plan to make sure that people and businesses can stay connected during these times.
“Building on the growth momentum from 2019, Indosat Ooredoo has delivered a strong performance in Q1’20. We are on track with our 3 years’ turnaround plan and see positive momentum continuing in the coming quarters. We all are facing unprecedented challenges and Indosat Ooredoo has been taking proactive & progressive steps to ensure that we support our employees, customers, and community in this challenging situation. We were amongst the first to implement virtual ways of working for our employees to ensure their health and safety. We have accelerated our network rollout plan to make sure that people can stay connected during these times. Steps have been taken to support business continuity for enterprise customer and Indosat Ooredoo continues to support government initiatives in these tough times. Indosat Ooredoo remains committed to accelerating Indonesia’s digital economy agenda and will continue to support to navigate our country through this pandemic,” says President Director and CEO Indosat Ooredoo, Ahmad Al-Neama.
Indosat Ooredoo’s Cellular, MIDI, and Fixed Telecommunication business each contributed 82%, 15%, and 3% respectively to the consolidated operating revenues for the period ended 31 March 2020. The company also managed to book 10.4% increase in EBITDA to Rp 2.4 trillion compared to the same period last year. However, due to one-off impact of organization rightsizing and loss on foreign exchange, in the first quarter this year, Indosat Ooredoo recorded net loss of Rp 605.6 billion, increased by Rp 313.1 billion over the net loss in the first quarter last year.
As of the end of the first quarter of 2020, Indosat Ooredoo also managed to increase its customer base by 5.4% to 56.2 million due to better product offering combined with improved network. The Company operated 133,186 BTSs as of 31 March 2020, adding 51,680 BTSs compared to last year. To date, the Company has operated 52,174 4G BTSs, which covers nearly 90% of population.