Telkom Indonesia's Net Profit Decreased by 16.19% Last Year to Rp 20.75 trillion

BUMN - JAKARTA. Indonesian state-owned company PT Telkom Indonesia Tbk (TLKM) has reported an increase in revenue in 2022. However, the company's earnings have decreased.

Telkom's revenue reached Rp 147.31 trillion in 2022, a slight increase of 2.86% from the previous year's revenue of Rp 143.21 trillion.

Mobile revenue remains the largest contributor to TLKM's business. In the previous year, Telkom's mobile revenue reached Rp 85.49 trillion, a slight increase from Rp 84.27 trillion.

Although mobile revenue increased slightly, it recorded an increase in the data and internet revenue segment from Rp 64.5 trillion to Rp 69 trillion. However, there was a decrease in mobile phone revenue from Rp 14.66 trillion to Rp 11.9 trillion.

However, TLKM's net profit decreased by 16.19% last year to Rp 20.75 trillion. In the previous year, the company's annual profit attributable to the parent entity reached Rp 24.76 trillion.

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The decline in Telkom's profit was due to unrealized losses from the fair value change of investments amounting to Rp 6.44 trillion in 2022. In 2021, Telkom recorded unrealized gains from the fair value change of investments amounting to Rp 3.43 trillion.

Telkom stated that its subsidiary, Telkomsel, assessed the fair value of its investment in PT GoTo Gojek Tokopedia Tbk (GOTO) using the GOTO share market value of Rp 91 per share at the end of December 2022. The amount of unrealized losses from the fair value change of Telkomsel's investment in GOTO at the end of last year was Rp 6.74 trillion.

Ahmad Reza, SVP Corporate Communications & Investor Relations at Telkom Indonesia, said that since the beginning of Telkom's investment through Telkomsel in GOTO, the focus has been on long-term business development and potential synergy value, not just capital gain.

"Along with GoTo, which has now become a public company through an IPO last year, fluctuating stock values become a normal thing that follows market developments, so the impact can only be short-term, while still having the opportunity to grow according to GoTo's consistency in developing its business, especially in the digital sector in the long run," said Reza.

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The synergy between Telkomsel and GoTo includes Telkomsel's special partnership packages for Gojek driver partners and Gofood merchants, as well as digitalizing Telkomsel's reseller/outlet partners in the GoShop ecosystem. There is also a call masking service solution from Telkomsel nGage, which is a contact disguise solution for the convenience of Gojek's operational services in communicating between driver partners and customers.

Other synergies include the integration of Telkomsel's MyAdz digital advertising service and GoTo's Gobiz service, as well as co-marketing for PBUG game bundling, GoScreen sales cooperation by Digiads, voucher exchange for Gojek in Telkomsel Poin, and driver and Gofod activation programs for resellers in Digipos. Lastly, there is a joint venture between Telkomsel Ekosistem Digital, a subsidiary of Telkomsel, and PT Aplikasi Multimedia Anak Bangsa, a subsidiary of GoTo, to establish the game publisher company Majamojo.