Indosat Ooredoo has announced its financial results for the full year, ended 31 December 2020.
President Director and CEO Indosat Ooredoo, Ahmad Al-Neama said: “Despite the challenges created by the COVID-19 pandemic and pricing pressure, Indosat Ooredoo has continued to deliver on our three-year strategy and maintained growth momentum. We are grateful for the on-going 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.”
“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.”
Indosat Ooredoo has recorded solid performance for the full year ended 31 December 2020, with total revenue increasing by 6.9% YoY to IDR 27.9 trillion, cellular revenue increasing by 11.6% YoY to IDR 23.1 trillion.
EBITDA reaching IDR 11.4 trillion, an increase of 16% YoY due to resilient revenue growth and a focus on operational efficiencies. EBITDA margin increased by 3.2 ppt to 40.9%.
Cellular subscriber numbers grew by 1.7% to 60.3 million by end of 2020, and Average Revenue per User (ARPU) increased to IDR 31.9 thousand from previously IDR 27.9 thousand, driven mainly by a substantial data traffic increase of 52.8% YoY.
Indosat Ooredoo also delivered strong operational performance, including improving our video experienced by 55.8% YoY, doubling our 4G download speed, and significantly improving our upload speed by 88.4% YoY.
During the year Indosat Ooredoo has successfully partnered with global digital players like Facebook, Google, Cisco and Ericsson to bring advanced technologies and capabilities to fast-track digitalization of the customer experience and deliver network improvements to Indonesia.
We have continued to introduce new innovative products to help customers stay connected as well as business and education to continue to operate during the pandemic. Through IM3 Ooredoo we launched a new IMPreneur package, a business package specially designed for SMEs and through Indosat Ooredoo Business, we recently introduced the “iDo Voice” solution, which consists of 3 new voice services for corporate customers.
Indosat Ooredoo’s investment in 4G network infrastructure and commitment to our customers continued to be recognized by prestigious international business awards. At the Opensignal Global Mobile Network Experience Awards 2020, we received the “Global Rising Star” award in Video Experience. We have also recently won the Corporate Excellence category in Telecommunications & ICT Industry at the Asia Pacific Enterprise Awards (APEA) 2020 Regional Edition.
In 2021, Indosat Ooredoo will continue the upgrade and expansion of our network, focusing on 4G/LTE and the Video Grade Network capable of providing improved internet services to customers. Our networks enhancement is part of our effort to enable digital transformation of Indonesia, in-line with the digital economy plan of Indonesian government and to accelerate national economy recovery.
We are confident for our growth momentum to continue in 2021. However, due to uncertainties associated with the economic recovery from the pandemic, we are cautiously optimistic in guiding revenue growth to be in-line with the industry, EBITDA margin to be in the low 40s, and Capex at approximately IDR 8 trillion.
