State-Owned Enterprise Performance: Telkom's Net Profit Grows 13.2% in Q3 2021

PT Telkom Indonesia Persero Tbk (TLKM) reported a profit of Rp 18.87 trillion in the third quarter of 2021. This figure represents a 13.15% year-on-year (yoy) increase compared to Rp 16.67 trillion in the same period of the previous year.

The increase in Telkom's net profit was driven by a 6.11% yoy increase in the state-owned corporation's revenue. Revenue grew from Rp 99.94 trillion to Rp 106.04 trillion between January and September 2021.

The majority of Telkom's revenue came from its data, internet, and information technology services business, reaching Rp 60.24 trillion as of September 2021. This revenue increased by 6.72% yoy from Rp 56.45 trillion.

Another significant contributor to Telkom's revenue was its Indihome business, which generated Rp 19.63 trillion in the first nine months of 2021. Revenue from this business grew significantly by 21.88% compared to the same period last year, which was Rp 16.11 trillion.

Another business contributing to Telkom's revenue was telephone payments, amounting to Rp 12.75 trillion. However, revenue from this business decreased by 15.74% compared to the same period last year, which was Rp 15.13 trillion.

This increase in Telkom's total revenue was accompanied by an increase in expenses and costs. For example, operating expenses, maintenance, and telecommunications services eroded profitability by Rp 26.97 trillion. This expense increased by 7.49% yoy from Rp 25.09 trillion.

In addition, several other expenses, such as depreciation and amortization, employee expenses, and interconnection expenses, also increased. However, Telkom's operating profit reached Rp 36.30 trillion as of September 2021, a 7.49% yoy increase from Rp 25.09 trillion.

Over the past five years, Telkom's net profit has shown a fluctuating trend in the third quarter. The highest net profit was recorded this year, while the lowest was in 2018 at Rp 14.23 trillion.